JPMorgan Offerss First Take on Stellantis NV (STLA) Quarterly Update

JPMorgan analyst Jose Asumendi reiterated an Overweight rating and {REMOVEPT} price target on Stellantis NV (NYSE: STLA)

The analyst comments "We take look at the first quarter and see revenues down about 10% yoy, with volumes down 6% yoy, negative geo mix, pricing stable yoy and currency at -4% yoy on the quarter. Volumes in NA are temporarily hit by some product changeovers, downtime in facilities, impacting models such as the RAM1500 and the Dodge family, and the high base effect on the Jeep Cherokee last year. The firm is, in our view, looking to maintain a tight grip on a) inventories and b) pricing power. We are not expecting inventories in NA to come down until H2, creating a steady decline in inventories, thus maintaining a firm grip on pricing power in the region. We expect the firm to address the need to reduce the cost base in NA if some of the prices for some of the vehicles are repositioned slightly downward to reduce incentives and maintain flat net pricing power. With regards to the other regions, Europe and Latam, we expect the firm to grow in line or slightly below the market, protecting pricing power, possibly with a lower mix of bev vs exit rate 2023, which should lower the asp, but protect earnings momentum."

For an analyst ratings summary and ratings history on Stellantis NV click here. For more ratings news on Stellantis NV click here.

Shares of Stellantis NV closed at $28.24 yesterday.

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