Fiat Chrysler Automobiles reported that fourth-quarter US sales decreased 8% year-over-year. For the full-year, total US sales plunged 17%.
The company attributed the drop in US sales to a sharp decline in fleet orders, mainly from rental car companies and lower demand during the coronavirus pandemic.
Meanwhile, Fiat’s (FCAU) US retail sales grew 1% in 4Q, driven by strong growth among the Jeep Gladiator, Ram, and Alfa Romeo brands. The company’s US operations sold 499,431 vehicles in 4Q and a total of 1,820,636 vehicles in 2020.
Looking ahead to 2021, the company expects to launch a number of new vehicles. Among the new launches, is the “Ram 1500 TRX, Jeep Wrangler 4xe, Jeep Wrangler Rubicon 392”, which it plans to roll out in the first quarter. (See FCAU stock analysis on TipRanks)
On Nov. 2, AlphaValue analyst Jorge Velandia upgraded Fiat to Buy from Sell and lifted the stock’s price target to $15.36 (16.7% downside potential). In a note to investors, Velandia said that higher demand for sports utility vehicles is pushing up the company’s margins and cash flows.
Overall, the Street consensus of a Moderate Buy is based on 5 Buys and 2 Holds. The average analyst price target of $17.28 suggests downside potential of about 6.3% to current levels. Shares have gained 40.6% over the past year.
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