Stellantis Results Better than Feared, but More Progress is Needed

1135 GMT - Stellantis's third-quarter results were less bad than expected, but more evidence is needed surrounding progress on costs, operating income recovery and positive free cash flow, Citi says. Adjusted operating income, especially in the U.S. and Middle East and Africa, was better than expected, despite a dramatic 4 billion euro free cash outflow. However, Citi says that the real reason for the positive share price response was that there were no new negative surprises, guidance was retained, and assurance was given that fourth-quarter free cash flow will reverse the third-quarter outflow. The increased focus on the value creation program, which underpins the management recovery targets, was also positive. It rates Stellantis's stock at neutral with a 5 euro target price. Shares fall 0.5% to 4.12 euros.