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Analysts’ Recommendations on FCAU Stock after Its Solid 1Q17

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Analysts on FCAU stock

According to the latest data compiled by Reuters, of the 26 analysts covering Fiat Chrysler Automobiles (FCAU), 35% have given the stock “buy” recommendations. Another 38% have given it “hold” recommendations, and the remaining 27% have given it “sell” recommendations.

Note that it’s important for investors to pay attention to analysts’ recommendations because it can impact a company’s stock price movement. If well-known analysts change their views, it could result in a significant short-term movement in a stock’s price.

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Consensus target price

On April 27, 2017, Fiat Chrysler had a market cap of $17.1 billion, much lower than those of its peers such as General Motors (GM) and Ford Motor Company (F). At the same time, Fiat Chrysler’s consensus 12-month target price was $14.27, reflecting a ~27% upside potential from its market price of $11.27.

Analysts may be maintaining a high price target on FCAU stock due to the company’s improving profitability and falling debt. Despite visible stagnation in Fiat Chrysler’s 1Q17 total sales, its rising revenue reflected optimism.

Peer comparison

Analysts’ estimates for the 12-month return potential of FCAU’s peers (FXD) as of April 27, 2017, are as follows:

  • General Motors: 36% of analysts recommend “buys” with ~17% upside potential.
  • Ford Motor Company: 33% of analysts recommend “buys” with ~13% upside potential.
  • Tesla Motors (TSLA) – 37% of analysts recommend “buys,” but its consensus target price of $262.82 is already much lower than its market price of $308.63.

In the next article, we’ll explore some key resistance and support levels in Fiat Chrysler stock following its 1Q17 earnings event.

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