Why You Should Buy Fiat Chrysler Dip
Marchionne's death caused some uncertainty but we still believe the stock is a "buy"
Aug 02 2018
We at Celeritas Investments have been long Fiat Chrysler stock since it was trading at $11 per share (read: Fiat Chrysler Stock Could More Than Double).
Since that time, our prediction came true and the stock more than doubled within months. However, after FCAU earnings miss accompanied with the death of the most important executive in the company's history, the stock plunged more than 20%.
So, is it time to buy the dip?
We took a look at what the most important analysts on Wall Street are saying, and here what we found:
JP Morgan's Jose Asumendi has his PT reaffirmed at $29 per share (or €25 per share) implying a nearly 80% upside. Get access to JPM's latest note on FCAU by pressing here.
Kepler's Thomas Besson also reaffirmed his PT at $29 per share (the same as JPM's Asumendi). Get access to Kepler's latest note on FCAU by pressing here.
Evercore's George Gelliers also has his PT reaffirmed at $26 per share. Get access to Evercore's latest note on FCAU by pressing here.
What Celeritas Investments thinks
We
believe that Fiat Chrysler is the cheapest stock in terms of valuation
among the auto industry. We still think that the company's crown jewel
is Maserati, which if spun off may have a valuation which is equal to
two-thirds of Ferrari's valuation at worst (we previously calculated
Maserati's value to be around $14 billion which is nearly 50% of Fiat
Chrysler's current valuation. This implies that you are getting Jeep,
RAM, Alfa Romeo, Fiat, and Chrysler at crazy cheap multiples.
We
believe that management should spinn-off Maserati while still having a
controlling stake in the company as this would give a more clear image about the company's true intrinsic value. Our PT of $23 per share is lower than that of Wall Street but still implies more than 35% upside. 
