Jefferies Starts Fiat Chrysler Automobiles NV (FCAU) at Buy
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Jefferies initiates coverage on Fiat Chrysler Automobiles NV (NYSE: FCAU) with a Buy rating with a €7.5 price target.
Analyst Philippe Houchois commented, "A more severe downturn triggering cash burn could drive shares as low as €4.2 while de-leveraging of net financial debt and pension suggests upside to €19."
He added, "FCA offers an interesting high risk/reward mix of product-related self-help, high equity leverage and strategic optionality as management continues to explore ways to reduce capital intensity and optimise returns, including through M&A. We think there are many views in the market that, with Ferrari now independent, FCA has run out of options to deleverage. Consistent with our view of a ‘soft cycle’, we see leverage more as valuation opportunity with FCA trading on a price/sales multiple of 8% vs EV/sales of 18%, with additional valuation support from FCA open to various consolidation and cooperation agreements to reduce capital intensity and duplication."
Shares of Fiat Chrysler Automobiles NV closed at $6.77 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Waters Corp. (WAT) Following Revenue Miss
- Sprint (S) PT Raised to $4.50 at Jefferies
- Asbury Automotive Group (ABG) PT Lowered to $55 at Jefferies
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesChrysler LLC, Jefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!