Analysts on foreign automakers
According to data compiled by Reuters, 40% of the 25 analysts covering Fiat Chrysler (FCAU) gave it a “buy” recommendation. About 38% and 43% of the analysts covering Toyota (TM) and Honda (HMC), respectively, gave them “buy” recommendations.
Currently, Toyota and Honda are covered by 24 and 23 analysts, respectively.
Consensus target price
As of December 6, 2017, Wall Street analysts’ 12-month consensus target price for Fiat Chrysler is $21.48. That reflects a significant upside potential of 26.7% from its market price of $16.95. FCAU stock has already risen 86.6% so far in 2017, ending 3Q17 with impressive 69.2% positive returns.
Analysts’ consensus price target for HMC is $36.92, which reflects a positive return potential of 11.4% from its market price of $33.13. Analysts’ consensus target price for Toyota’s ADR (American depositary receipt) is $125.87, with a 2.4% upside potential from its market price of $122.97.
In December, more analysts seem to be optimistic about FCAU compared to its Japanese peers HMC and TM. As we saw in this series, Fiat Chrysler’s profit margins have improved significantly in the last six quarters. That could be the main reason analysts expect the stock to continue trading positively going forward.
For Japanese automakers (IYK), concerns over the depreciating Japanese yen against the US dollar could continue to hurt their upcoming earnings from international markets.
In the next and final part of this series, we’ll look at Volkswagen’s (VLKAY) US sales in November 2017.