Stellantis, buyback program completed. But Equita downgrade arrives
Stellantis has completed the second phase of its program repurchase of actions for the year 2024, which was announced on 23 May 2024 with a budget of 1 billion euros, intended to be used between 23 May and 30 August.
The company purchased a total of 51,025,628 ordinary shares, reaching its expected spending limit of 1 billion euros through June 26. On that date, the group led by Carlos Tavares held a total of 81.5 million shares Stellantis in the treasury, corresponding to 2.1% of the total share capital.
Despite the success of the buyback, the title of Stellantis suffered a 2% drop on the morning of June 27, falling to 18.9 euros. This decline was influenced by the downward revision of the rating by analysts of Equitywho changed their recommendation from “buy” to “hold” and set a target price of 22 euros.
The decision was made based on a number of negative factors expected in the near term, including a decline in sales volumes and pricing pressures, starting in the second half of 2024. analysts they predict that these elements will lead to a downward revision of market estimates.
Equity also expressed concerns about the weak performance of Stellantis in the first half of 2024 and an unfavorable macroeconomic environment that could hinder visibility for the rest of the year.
They also noted that while the new models may improve the product mix, their positive impact will mainly be seen from next year. As a result, analysts have decided to remove the stock entirely. Stellantis from their recommended portfolio.
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