Stellantis shares suffered the biggest drop in the CAC 40 index on the Paris Bourse on Monday, as Deutsche Bank downgraded its recommendation to 'hold' from 'buy'.

Just under an hour before market close, the share price fell by 4.2%, while the CAC lost 1%. Victim of a 17% drop in one week, the share has now given up 26% since the start of the year.

In a research note, the broker recalls that, until now, it appreciated Stellantis' ability to outperform the economic climate by generating higher profit margins and free cash flow than its peers in the automotive sector.

While the intermediary points out that last Thursday's publication of a 10% recurring operating margin for the first half of the year may seem to validate such an observation, he points out that, with certain adjustments, the margin would be closer to 7.8%, a level below that of Renault and identical to that of the Volkswagen group.

The broker has consequently lowered his target price from €35 to €23.

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