Wells Fargo analyst Colin Langan initiated coverage of Stellantis with an Underweight rating and EUR 18 price target. The firm has cautious view on the industry into 2024 and beyond. Key headwinds include price deterioration, the costly battery electric vehicle ramp, possibly softening pickup demand, and excess global capacity, the analyst tells investors in a research note. The firm expects industry challenges to significantly impact industry profitability. It believes the market is likely underestimating the magnitude of the structural challenges that the industry faces over the next few years.
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