FCA: Goldman Sachs initiates with 'sell' rating
(CercleFinance.com) - Goldman Sachs said on Tuesday it has initiated coverage on FCA with a "sell" rating as it expects the auto giant's product cycle to slow down.
"FCA's shares have outperformed those of its peers over the last three years, as it materially grew North America earnings. However, we believe the opportunity for further N.A. earnings growth is limited," Goldman said in a research note.
It expects, in particular, a slowing product cycle following the successful launch of new pick-up trucks in North America.
The brokerage set a price target of 11.5 euros per share, representing a 7% downside.
Shares in FCA were down 3.6% at 12.1 euros in Tuesday trade while Milan's main stock index was down just 0.4%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"FCA's shares have outperformed those of its peers over the last three years, as it materially grew North America earnings. However, we believe the opportunity for further N.A. earnings growth is limited," Goldman said in a research note.
It expects, in particular, a slowing product cycle following the successful launch of new pick-up trucks in North America.
The brokerage set a price target of 11.5 euros per share, representing a 7% downside.
Shares in FCA were down 3.6% at 12.1 euros in Tuesday trade while Milan's main stock index was down just 0.4%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.