11:10 AM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $6 to $24 based on a 2025 P/E of 3.8x, a discount to its mean forward P/E. We lower our adjusted EPS estimates to EUR6.00 from EUR6.20 for 2024 and to EUR5.80 from EUR6.00 for 2025. STLA posted Q1 revenue of EUR41.7B (-12% Y/Y), EUR1.6B short of consensus, on a 10% drop in global shipments. Despite the disappointing sales numbers, STLA maintained prior full-year guidance. We maintain Hold (down from Buy last month) as STLA's inventory levels are a major concern, as detailed in our April 24 Thematic report "Autos: Ways to Play the Surging Popularity of Hybrids." In its key market of North America (NA; 55% of total operating income in 2023), STLA's brands of Jeep, Dodge, Ram, Fiat, and Alfa Romeo all have among the highest inventory levels of any automotive brand as regional shipments plummeted 20% Y/Y in Q1. We continue to view Stellantis ( STLA ) as an automaker that may have to increase incentives further or take other measures to better align supply with demand in the NA market.