How Wall Street Is Rating Fiat Chrysler Stock in October 2017
Fiat Chrysler stock
In the first three quarters of 2017, Fiat Chrysler stock (FCAU) nearly doubled with about 97.2% gains. These massive positive returns were much higher than those of peers General Motors (GM), Toyota (TM), and Ford (F). By comparison, the S&P 500 Index (SPY) rose about 12.5% in the first three quarters of this year. Let’s see what analysts are recommending for its stock in October 2017.
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Analysts are still positive on Fiat Chrysler
According to the data compiled by Reuters, about 44% of analysts covering FCAU were recommending a “buy.” Another 32% of the analysts advised investors to remain cautious on Fiat Chrysler stock and gave it a “hold” recommendation. The remaining 24% or six out of a total 25 analysts gave “sell” recommendations.
As of October 11, Fiat Chrysler’s consensus 12-month target price was $20.51, an upside potential of about 14.2% from its market price of $17.96.
Recent fundamental updates
Fiat Chrysler’s profitability has notably improved in the last five consecutive quarters. The company’s higher truck sales and efforts to drive manufacturing efficiencies have helped it to boost profit margins. In the second quarter, FCAU reported an adjusted EBIT (earnings before interest and tax) margin of 6.7%, much higher than 5.8% in the same quarter of 2016.
Wall Street analysts’ consensus estimates suggest that the company could post a ~28% increase in its 3Q17 earnings, which could be one of the reasons why analysts are still positive on Fiat Chrysler stock in October 2017.
Note that despite recent improvements, FCAU still has lower profit margins among peers (FXD) including Ford, Toyota, and GM.
Next, we’ll find out what analysts are recommending for Toyota Motor in October 2017.