Morgan Stanley downgraded Stellantis (STLA) from Overweight to Equalweight, citing concerns about its investments, product pipeline, market share, and financial indicators compared to peers. Despite these concerns, the firm acknowledged Stellantis’s underperformance relative to other European automakers, its improving product selection, and the structural benefit of its exposure to US markets, which should offer protection from Chinese competition. The report suggests that while STLA has potential, certain AI stocks might offer greater upside and less risk.
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Stellantis (STLA) Stock Rated Equalweight by Morgan Stanley After Strategy Concerns
Morgan Stanley downgraded Stellantis (STLA) from Overweight to Equalweight, citing concerns about its investments, product pipeline, market share, and financial indicators compared to peers. Despite these concerns, the firm acknowledged Stellantis’s underperformance relative to other European automakers, its improving product selection, and the structural benefit of its exposure to US markets, which should offer protection from Chinese competition. The report suggests that while STLA has potential, certain AI stocks might offer greater upside and less risk.