What can investors expect from STLA's EPS in the next quarter?

**Stellantis NV (STLA) is expected to face challenges in the near term, impacting its EPS in the next quarter.** Here's a detailed analysis: 1. **Analyst Ratings and Price Target Adjustments**: Piper Sandler recently downgraded Stellantis from an "Overweight" rating to a "Neutral" rating, lowering the price target from $23 to $13. This reflects a more cautious outlook on the stock, suggesting potential concerns about the company's financial performance and leadership. 2. **Expected Operating Margin**: Piper Sandler predicts a 5% adjusted operating margin for Stellantis in 2025. This indicates that the company may struggle to improve its margins in the near term, which could negatively affect its EPS. 3. **Electric Vehicle Strategy**: The analyst mentioned that Stellantis' electric vehicle (EV) offerings are perceived as too expensive, particularly in the U.S. and Europe. This could impact the company's sales and profitability, potentially leading to a decrease in EPS. 4. **Leadership Vacuum and Tariff Risks**: The absence of a CEO and ongoing tariff risks are cited as additional challenges. These factors may contribute to operational instability, which could affect the company's financial performance and, consequently, its EPS. 5. **Market Performance and Institutional Activity**: Stellantis' stock has experienced a gap down, with a decrease from $12.67 to $12.11. This decline may reflect market concerns about the company's prospects. Additionally, institutional investors have shown mixed activity, with some buying and selling shares. This could indicate a lack of confidence in the company's short-term performance. 6. **Earnings Estimate Trends**: The consensus EPS forecast for the fiscal year ending December 2025 has decreased from $2.68 to $2.47 over the past month. This trend suggests that analysts are lowering their expectations for the company's earnings, which could be a sign of a potential decline in EPS in the next quarter. In conclusion, investors can expect STLA's EPS to face pressure in the next quarter due to a combination of factors including challenging market conditions, high tariffs, and a leadership vacuum. The company's EV strategy is also perceived as too expensive, which may hurt margins and EPS.