The five seats up for Fca, which is sponsored by all of the analysts – The Republic

MILAN - The 2017 Fiat Chrysler has started under a good star. Not only the group led by Sergio Marchionne has racked up 5 runs in the sign of the rise, gaining 1.2 euro and tapping fee of 10 euro with a rise of 13.5%, but the colossus of the car has collected a barrage of promotions from all the analysts. The most recent came from Goldman Sachs, which has included the title of Fca in the ‘Convinction buy list’ with a price target that goes from 9.9 to 16.5 in euro betting on the fact that the last act of Marchionne, at the helm of the group since 2003, will be to rid the company of the Agnelli family from the debts already by the end of 2018.

According to Goldman Sachs, despite the market of the car Uses both at the highest and the Fca has a technology gap compared to its competitors, the group has some ace in the hole, and spin-off activities such as the Maserati after the success of Ferrari, rather than new strategic options, as the interest of Samsung to Magneti Marelli, could accelerate the change. "The market is greatly underestimating the ability of Fca 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,” explain the experts of Gs – which estimate that the group in 2018, will have $ 3.2 billion of cash, compared to 4.7 billion of debt expected at the end of 2016.

The step change will be driven by a cash generation estimated in about 56% of the capitalization of the company, the resources will come mainly thanks to the realignment of supply towards the top of the range in the Us area. And so Gs is estimated that the earnings per share of Fcsa, as adjusted, net of extraordinary components, this year will rise to eur 2.82 euros this year (when the average of the analysts expects 1,74 euro) and 2018 to € 3.42 € (against a consensus to 2,01 euros), compared to 1,94 euros expected at the end of 2016. In this way, the estimates of Goldman Sachs are aligned 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. Who knows if then it will be Goldman Sachs, one of the banks that Marchionne will use t o separate the Maserati or to seek new alliances for Magneti Marelli.

Topics:

cars

usa

Starring:

Fiat

ferrari

Maserati

Sergio Marchionne