UPDATE: Jefferies Upgrades Fiat Chrysler Automobiles NV (FCAU) to Buy

July 5, 2018 5:18 AM EDT
Get Alerts FCAU Hot Sheet
Price: $15.23 --0%

Rating Summary:
    10 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 12 | Down: 28 | New: 29
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(Updated - July 5, 2018 9:02 AM EDT)

(updated to add analyst comment)

Jefferies upgraded Fiat Chrysler Automobiles NV (NYSE: FCAU) from Hold to Buy with a price target of $23.00 (from $26.00).

Analyst Philippe Houchois upgrades the name on valuation grounds noting repricing post-CMD appears sever in light of the expected step-up in margin, 24% FCF yield and what he believes is ongoing scope for corporate change.

The analyst believes product activity in 2018 and in 2019 supports solid margin expansion and accelerated de-leveraging implies the 24% FCF yield for 2018 and 15% for 2018.

Further he comments "We trimmed FY 2018-20 EPS 2%, including delayed RAM production in the near term and some effects from an estimated 30k units imported from the EU into the US (Maserati, Alfa and Jeep Renegade) and c.14k Jeeps exported to China. NAFTA re-negotiation is a risk that remains difficult to quantify but we note that FCA has started to re-allocate production to benefit from lower tax rates in the US."

For an analyst ratings summary and ratings history on Fiat Chrysler Automobiles NV click here. For more ratings news on Fiat Chrysler Automobiles NV click here.

Shares of Fiat Chrysler Automobiles NV closed at $18.90 yesterday.

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