Stellantis shares suffered the second biggest drop in the CAC 40 index on Tuesday morning on the Paris Bourse, in the wake of a recommendation downgrade by Berenberg.

At 10.40 am, the automotive group's shares were down 1.1%, while the SBF 120 was virtually unchanged.

Berenberg announced this morning that it had lowered its recommendation to 'hold' from 'buy', while raising its target price to 29 euros from 21 euros.

The analyst points out that Stellantis shares have rightly caught up with the valuation lag they had previously suffered in relation to their closest comparables, but considers that their short-term upside potential is now limited.

The United States could also be a short-term problem in terms of margins, after several years of exceptional results in the region", he adds.

With a 27% gain since the start of the year, Stellantis is currently the second-biggest riser in the CAC 40 index this year, behind Safran (+31%).

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