Stellantis’ recovery could take longer than the first moves from its new management team might suggest. That is the conclusion RBC Capital Markets reached after meeting with Charlie Christman, Stellantis’ head of investor relations. The bank maintained its Sector Perform rating but cut its price target from €7 to €5, arguing that investors will need patience before the turnaround produces measurable results.
Stellantis turnaround will take time as RBC cuts price target to €5
RBC links part of Stellantis’ current difficulties to previous cuts in selling, general and administrative expenses and research and development. Analysts believe those reductions contributed to product problems and recalls while weakening some industrial processes. Stellantis itself launched a broader strategic reset earlier this year to address previous execution problems and realign spending with customer demand.
RBC also sees Stellantis’ previous EV-focused platform strategy as another complication. FaSTLAne 2030 now takes a more flexible approach. Stellantis plans to expand multi-energy coverage across its portfolio, combining internal-combustion engines, hybrids and battery-electric vehicles so regional teams can respond more quickly to local demand.
Cost reduction will play a major role in rebuilding margins. Stellantis’ Value Creation Program targets €6 billion in annual run-rate savings by 2028 compared with the 2025 baseline. The company plans to lower vehicle and manufacturing costs, increase plant utilization and use partnerships to share development expenses and make better use of existing capacity.
RBC believes adjusted operating profit could return to growth in 2027, but North America remains the most important test. Stellantis plans to allocate 60% of its €36 billion investment in brands and products to North America, where it targets 25% revenue growth, 35% higher volume and an adjusted operating margin of 8% to 10%. Jeep, Ram, Dodge and Chrysler will play central roles in that recovery.
Other investment banks remain cautious. Goldman Sachs has also maintained a Neutral rating while cutting its Stellantis price target from €6 to €5.
The two price-target cuts show that investors remain cautious about Stellantis’ recovery. Cost reductions and new products may improve the outlook, but the market still wants to see clear evidence that the turnaround can deliver stronger and more sustainable margins.