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Shares of Porsche (PAH3.DE), Mercedes-Benz (MBG.DE), and Stellantis (STLA) are under pressure after being downgraded by Barclays. Mercedes and Stellantis were both downgraded to Equal Weight while Porsche was downgraded to Underweight. The firm cited margin pressures and rising competition behind the calls.
Morning Brief Hosts Seana Smith and Brad Smith dig into the details of these bearish calls.
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This post was written by Melanie Riehl
Shares of car makers Porsche, Mercedes, and Stellantis, they are under pressure. All three automakers getting hit with a downgrade from Barclays today. Mercedes and Stellantis both downgraded to equal weight and Porsche revised to underweight. The firm citing margin pressures, the tough industry and the environment there, plus rising competition as reasons for the downgrades here. We've been keeping tabs on all of these companies pre-market, and one of the huge things, and as you're taking a look at Stellantis on your screen, the move on the reaction of this down by about four and a half percent as of right now. We've got some other ones to throw up as well, Porsche and Mercedes-Benz, also not looking too hot there. They are down by about 4% for Porsche, about 2% for Mercedes-Benz. And and it's a especially when we think about the consumer environment, um, there's still more strength. As we were discussing this with Carl Brower from iSeeCars.com yesterday, still more strength at the luxury end of the scale here, but there is still more discernment that's being applied even within that end of the market here. And so that's certainly factoring into this decision-making process that they are seeing across the board for some of these luxury automakers right now, too.
Yeah, and Mercedes is another company that's mentioning the slowdown in China, that being problematic here. And that was one of the reasons that Barclays downgraded the stock here on that slowing demand in China, though they did make it the argument that maybe much of that has been priced into this point. And then Stellantis, that move lower really caught my attention. It's a stock that's been under pressure for much of the week as we have been getting some of these updates, but at least from Barclays perspective, they made the argument that Stellantis was quote unquote being too slow to acknowledge its US inventory issue and eroding EU US market share. So again, a tough road ahead for some of these European automakers, at least Barclays making that argument.
