Fiat Chrysler: UBS upgrades to 'buy'

(CercleFinance.com) - This morning UBS upgraded its rating on the share of the Fiat Chrysler (FCA), the Italian-American car maker, upping its previously neutral rating to “buy”.


The broker has raised its 12-month target price from 20.5 euros to 23 euros.

Analysts justify their upgrade by the group's earnings momentum. "FCA is one of the few OEMs with a visible positive earnings trend into 2019/20 on the back of its model cycle," the broker's report said.

In addition, "The planned spin-off of Magneti Marelli in Q4/18 or Q1/19 is likely to crystallize SOTP value," it added. Although UBS is skeptical about the 2022 targets presented by FCA recently, its analysts believe the stock is trading at a discount relative to the sector.



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