Morgan Stanley cuts Renault, Stellantis on China pressure

Porsche Automobil Holding SE

03/02/2026 08:49

** Morgan Stanley says China's auto exports are moving "off the chart," enabling Chinese OEMs to ramp up retail and industrial capacity overseas, and raising pressure on European volume players

** It cuts Renault RENA.PA to "underweight" from "equal-weight" and Stellantis STLAM.MI to "equal-weight" from "overweight"

** MS also slashes Renault's PT by 30% to 33 euros, expecting the co to lose momentum amid tougher competition from Chinese OEMs and Volkswagen VOWG.DE despite strong launches in 2024

** MS says Stellantis' product improvements are not yet translating into clear share gains, cutting by 46% its FY 2026 EPS estimate for the co

** Broker prefers premium OEMs, naming Mercedes‑Benz MBGn.DE its Top Pick, saying stronger margins and FCF provide better protection from rising competition in the mass-market segment

** MS keeps "overweight" on BMW BMWG.DE, expecting the brand to keep gaining share thanks to a strong launch cycle, despite a slower margins recovery than in Mercedes

** Porsche P911_p.DE remains "underweight" as MS points to weak product momentum, slower margin recovery versus peers, and added FX/tariff risk from full Europe-based production

** STOXX Europe 600 Automobiles & Parts Index .SXAP is down 3% YTD

 (Reporting by Jerome Terroy)

 ((jerome.terroy@thomsonreuters.com))