After Morgan Stanley, Goldman Sachs also awards Fiat Chrysler Automobiles; the experts have confirmed the group led by Sergio Marchionne in their list of securities to buy with conviction, on the basis of a target price of 19,2 euros, signaling that the company is in line to reach the targets set for 2018. in particular, in the year under review, FCA should be able to generate a cash flow of 7,6 billion euros, which represents approximately 46% of the current market capitalization of the group.
However, analysts have reported that the value of the group, based on the sum of the asset valuations, is equal to 32,5 euros per share. In detail, based on the estimates forecast for 2018, Goldman Sachs indicates an overall valuation of the group (including debt) of approximately 53,42 billion euros. In particular, the overall valuation of the premium brands (Maserati, Alfa Romeo and Jeep) is estimated at approximately 30,5 billion euros, of which 22,5 billion relating to Jeep alone, which in 2018 should generate revenues of over 45 billion euro and an EBIT of almost 4,3 billion.
Goldman Sachs has set five key points for a possible further review of the valuation of Fiat Chrysler Automobiles:
1- The greatest renewal ever of the group's cars in the NAFTA (North American Free Trade Agreement) area.
2- Modification of the product mix in the NAFTA area, with a greater focus on SUVs and pickups.
3- Strengthening in the EMEA area (Europe, Middle East, and Africa), through the renewal of Alfa Romeo and the introduction of the Jeep brand.
4- Recovery in the final market of the LATAM area (Latin America), thanks to the tax incentive plan in the state of Pernambuco (Brazil).
5- Recovery of Maserati, in the wake of the favorable momentum of the Levante model.
Furthermore, Goldman Sachs signals a potential creation of value from a possible spin-off of the activities of Magneti Marelli and Comau (components) and expects that FCA could close the current year with revenues of almost 117 billion euros, an increase of 5,2 .111,02% compared to the 2016 billion obtained in 6,06. The operating result is estimated to grow from 7,99 billion to XNUMX billion euros.
Net income should increase from 2,51 billion to 3,66 billion euros; as a result, earnings per share will increase from 1,64 euros to 2,36 euros. Goldman Sachs expects Fiat Chrysler Automobiles not to distribute any dividends with reference to the financial statements for the three-year period 2017/2019.
