Piper Sandler downgraded Stellantis (STLA) from Overweight to Underweight. The firm slashed its price target from $14 to $4. This double downgrade triggered a decline in the company's shares.
Analysts warned the automaker's situation will likely worsen before improving. Vertically-integrated Chinese brands are increasing competition in Europe, Latin America, and the Middle East.
These competitive pressures are squeezing profit margins. The company's market share has not recovered at the anticipated pace.