UBS cuts Stellantis rating to neutral and lowers target price by about 40%

UBS downgraded Stellantis from a "Buy" to a "Neutral" rating and reduced the 12‑month target price from €9.50 to €5.80. The Swiss bank cited weak profitability in North America, where sales volumes rose 6% and revenue grew 32% in the second quarter but the overall operating margin stalled at 1.8%. High inventory levels could force Stellantis to curb production in the third quarter or increase commercial incentives, both of which would pressure margins further. UBS also trimmed its adjusted operating profit forecasts, expecting €3 billion in 2026 (1.9% margin) and €4.7 billion in 2027 (2.9% margin). The downgrade comes amid broader analyst activity, with other brokers adjusting targets for companies such as Ferraris and Azimut Holding, but the central development is the UBS rating cut on Stellantis.