07:13 AM EDT, 09/17/2026 (MT Newswires) -- Berenberg downgraded its rating and price target for Stellantis (STLAM.MI, STLAP.PA), citing expectations of a prolonged margin recovery timeline and concerns regarding the European automaker's US inventory. "Weak operating leverage in Q2, particularly in North America, where the improvement in margins lagged the recovery in volumes, is raising legitimate questions over the H2 margin trajectory, especially as inventory destocking is likely to become a volume headwind. Management highlighted improving pricing in North America, stabilising pricing in Europe and accelerating cost savings as the key offsets, but we believe this leaves little room for disappointment given intensifying raw material headwinds and still-competitive pricing conditions, particularly in Europe," according to a European automaker-focused report published Wednesday. The research firm noted that Stellantis' 32% year-over-year jump in North American shipments over third-quarter 2025 to second-quarter 2026 failed to hit margin targets, while rising inventory levels approaching 100 days create fresh risks amid expectations of softening US demand. "That said, the situation is less dramatic than in 2024, as likely more than 75-80% of inventory comprises new models that are more adequately priced. Still, expectations for flat H2 shipments versus H1 appear demanding," analysts said. Against this backdrop, Berenberg lowered its rating for the stock to hold from buy and trimmed its price target to 5.10 euros from 7.80 euros. The research firm also cut its operating profit forecasts for full-year 2026 through 2028 by 15%.

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