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Analysts’ Views on Fiat Chrysler Stock before Its 4Q17 Earnings

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Fiat Chrysler Automobiles

In 2017, Fiat Chrysler’s stock (FCAU) price nearly doubled with an ~96.4% increase. After losing 3.1% and 1.4% in October and November, respectively, its stock turned positive in December again and rose 4.3%. FCAU stock outperformed peers General Motors (GM), Ford (F), and Toyota (TM) in 2017. In 2017, GM, Ford, and TM rose 17.7%, 3.0%, and 6.7%, respectively.

Now, let’s see what analysts expect from Fiat Chrysler stock in 2018.

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Ratings on FCAU

According to the recent data compiled by Reuters, about 44% of analysts covering Fiat Chrysler stock were recommending a “buy.” Another 39% of the analysts advised investors to remain cautious on Fiat Chrysler stock and gave “hold” recommendations. The remaining 17% of total 25 analysts gave “sell” recommendations.

On January 19, analysts’ consensus 12-month target price for FCAU was $23.82. This target price was already about 0.5% lower than its market price of $23.93. About three months ago, analysts’ consensus target price for FCAU was $20.51.

4Q17 earnings estimates

In 3Q17, FCAU reported a 25% YoY (year-over-year) jump in its adjusted earnings. While the company’s revenues for the quarter dropped 1.6%, its profit margins improved significantly. This improvement was partially driven by the company’s increased focus on US retail vehicle sales. For 4Q17, analysts estimate its adjusted earnings to be 25% higher YoY.

Fiat Chrysler has showcased a handsome profit margin expansion in the last six reported quarters in a row. Higher truck sales (IYK) and efforts to drive manufacturing efficiencies have also helped the company boost profits and improve its debt position.

In the next part, we’ll find out what analysts are recommending for Toyota Motor in January 2018.

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