After the promotion, arrived yesterday by the analysts of the Piazzetta Cuccia, is the buy of Goldman Sachs to put the turbo at the Fiat Chrysler Automobiles. Home business new york has in fact put the title into its Conviction buy list, with the target price that runs from a 9.9 to 16.5 euros. An increase of 66.7% of that is rimpinguando exchanges on the actions of the automotive group that earns 6.1% to 9,82 euro: it’s already changed hands more than 1.97% of the share capital, with an appreciation of the security, which from the beginning of 2017, so in just 5 sessions considering that of today, was more than 1 euro.
Despite the rally of the last month, according to Goldman Sachs, there are still many doubts that surround the future of the major italo-american, the clouds which gather around the concerns of a car market of the Usa is now at the highest of high leverage and of a technological delay of Fca vis-à-vis its competitors. Also, it seems that according to many investors, with the giant lack of strategic options, after that the interest of Samsung to Magneti Marelli went off and after that General Motors has postponed the advances M&A to the sender.
However, “in our opinion, the market is greatly underestimating the ability of Fiat-Chrysler to improve their price-mix in the Nafta region through the displacement of production vehicles aimed at the mass market towards models that are more profitable”, stressed by the business bank, this also without providing for an acceleration of the car market Usa, seen stable in 2017.
experts have added to expect a reversal of course in the next two years thanks to a better operating income: net debt of 4.7 billion at the end of 2016 to a surplus of 3.2 billion by 2018. The turn of the screw will be driven by a cash generation which corresponds to the current values, approximately 56% of the total market capitalization of the company: “according to our calculations, in the period Fca will be able to generate an ebitda of 31.8 billion euro, corresponding to an ebit of 17.5 billion”.
The realignment of supply in the north american area, for the experts, will be the main driver of growth, with estimates on ebit of 2017 and 2018 that have been raised, respectively, 20.5% to 8,23 billion (consensus Reuters in 6,105 billion) and 35.5% to 9,27 billion (consensus Reuters to 6,447 billion), with ebit 2016 seen to 6.24 billion. Strong correction is also positive for the forecasts adjusted earnings per share rose 33.3% to eur 2.82 million for the 2017 (consent to 1.74 euro) and 52,7% to € 3.42 eur for the year 2018 (consent to 2,01 euros), with the eps reported 2016 to 1.94 euros.
In this way, the estimates of the broker bring it in line with the targets defined by the group led by Sergio Marchionne, and for 2018, had identified a ebit adjusted to between 8.7 and 9.8 billion, underlying net income between 4.7 and 5.5 billion (5.3 billion, and the forecast of Goldman Sachs) and a positive net financial position of between 4 and 5 billion.
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