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Analysts’ Views on Foreign Automakers after February 2018

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Analysts on foreign automakers

According to recent data from Reuters, 48% of the 23 analysts covering Fiat Chrysler (FCAU) stock have recommended “buy.” In comparison, about 43% and 55% of the analysts covering Toyota (TM) and Honda (HMC) have recommended “buy,” respectively. At the moment, TM and HMC are covered by 23 and 22 analysts.

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Price targets for the next 12 months

As of March 14, Wall Street analysts’ 12-month target price for FCAU was $31.90, reflecting a huge upside potential of ~52% based on its market price of $20.98. Fiat Chrysler stock has risen 17.6% in 1Q18 so far, after ending 4Q17 with a 0.4% drop.

Analysts’ price target for Honda was $40.80, which reflected a return potential of 17.9% based on its market price of $34.60. Their target price for Toyota ADRs (American depositary receipts) was $138.29, ~6.4% higher than its market price of $130.

Fiat Chrysler stands out

In March 2018, a higher percentage of analysts were optimistic about Fiat Chrysler than Japanese peers (VCR) HMC and TM. As noted earlier in this series, Fiat Chrysler’s profit margins have improved significantly over the last eight quarters. FCAU’s positive 2018 outlook could be another reason why analysts expect its stock to continue soaring this year as well. Continue to the next part, where we’ll look at Volkswagen’s (VLKAY) US sales in February 2018.

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