Analysts’ Ratings on Foreign Automakers after January 2018 Data



Analysts on foreign automakers

According to the data compiled by Reuters, 46% of the 24 analysts covering Fiat Chrysler Automobiles (FCAU) stock have given it “buy” ratings.

In comparison, ~42% and 43% of analysts covering Toyota Motor (TM) and Honda Motor Company (HMC) have given them “buy” recommendations, respectively. At the moment, TM and HMC are being covered by 24 and 23 analysts, respectively.

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Upside potential

On February 13, Wall Street analysts’ 12-month consensus target price for FCAU was $34.53, reflecting a huge upside potential of ~60.3% compared to its market price of $21.54. Notably, Fiat Chrysler stock has already risen 20.7% in 1Q18 after ending 4Q17 with a minor fall of 0.4%.

Analysts’ consensus price target for Honda was $40.12, which reflected a positive return potential of 15.9% from its market price of $34.60. In contrast, analysts’ consensus target price for Toyota’s ADR (American depositary receipt) was $135.17, which was already near its market price of $135.04.

Is FCAU the best buy?

In February, a higher percentage of analysts seem optimistic about Fiat Chrysler compared to its Japanese peers (IYK) HMC and TM. As we discussed earlier in this series, Fiat Chrysler’s profit margins have improved significantly over the last seven quarters in a row. FCAU’s positive 2018 outlook could be another reason why analysts expect its stock to continue soaring this year.

Read the next article to learn about Volkswagen’s (VLKAY) US sales in January 2018.


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