Fiat Chrysler (FCAU, $13.70) gets 'sell' rating by Goldman Sachs

Goldman Sachs initiated coverage on automaker Fiat Chrysler on Tuesday, with a sell rating on the company’s stock.

Goldman analyst George Galliers indicated that the investment firm does not expect any substantial growth in Fiat’s North America earnings through its five-year (2018-22) plan. Galliers noted that North America can be attributed to the company’s earnings improvement over its last five-year business plan.

As for the auto manufacturer’s European market, Galliers is concerned about the age of the vehicles. The Dodge Challenger, for example, hasn’t been fully redesigned since 2008, and the Chrysler 300 has not been updated since 2011. Fiat Chrysler plans to redesign both in 2021. 

Nevertheless, Galliers indicated that Fiat Chrysler's brand appeal and significant heritage along with strong European sales could help offset some of its challenges.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.