Shares of Fiat Chrysler rose more than 5% in midday trading on Wednesday after the company said it is considering options to spin off the upscale Maserati and Alfa Romeo brands, as well as its components operations.
According to Bloomberg, Fiat Chrysler is considering the spinoffs to focus the company on mass-market cars. This would make the car automobile company more attractive for a potential buyer. Combined, the two luxury car brands are worth more than $8.3 billion.
This news follows a series of reports about Fiat Chrysler and its potential buyout. Last week, the stock rose on the news that a Chinese car manufacturer was interested in the company. And just this Monday, shares of Fiat Chrysler jumped after reports indicated that Great Wall Motor, China’s largest SUV and pick-up manufacturer, confirmed its interest in acquiring Fiat Chrysler.
However, Great Wall Motor has since said there are “big uncertainties” whether it will continue to study Fiat Chrysler for a potential acquisition. In a filing to the Shanghai stock exchange, the Chinese company said that its efforts have “not generated concrete progress as of now.”
Fiat Chrysler previously spun off their Ferrari (RACE - Free Report) brand in January 2016. Since then, shares of Ferrari have grown from its IPO price of $60 per share to $115.18 per share as of Tuesday’s close.
Analysts are hoping for similar success should Fiat Chrysler spin off the Maserati and Alfa Romeo brands. Jefferies raised the price target on the company from €14 to €16, while Morgan Stanley (MS - Free Report) upgraded the stock to Overweight with a new price target of €15.
The timing of the potential overhaul for Fiat Chrysler is uncertain and a final decision may not be made until early next year.
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Shares of Fiat Chrysler rose more than 5% in midday trading on Wednesday after the company said it is considering options to spin off the upscale Maserati and Alfa Romeo brands, as well as its components operations.
According to Bloomberg, Fiat Chrysler is considering the spinoffs to focus the company on mass-market cars. This would make the car automobile company more attractive for a potential buyer. Combined, the two luxury car brands are worth more than $8.3 billion.
This news follows a series of reports about Fiat Chrysler and its potential buyout. Last week, the stock rose on the news that a Chinese car manufacturer was interested in the company. And just this Monday, shares of Fiat Chrysler jumped after reports indicated that Great Wall Motor, China’s largest SUV and pick-up manufacturer, confirmed its interest in acquiring Fiat Chrysler.
However, Great Wall Motor has since said there are “big uncertainties” whether it will continue to study Fiat Chrysler for a potential acquisition. In a filing to the Shanghai stock exchange, the Chinese company said that its efforts have “not generated concrete progress as of now.”
Fiat Chrysler previously spun off their Ferrari (RACE - Free Report) brand in January 2016. Since then, shares of Ferrari have grown from its IPO price of $60 per share to $115.18 per share as of Tuesday’s close.
Analysts are hoping for similar success should Fiat Chrysler spin off the Maserati and Alfa Romeo brands. Jefferies raised the price target on the company from €14 to €16, while Morgan Stanley (MS - Free Report) upgraded the stock to Overweight with a new price target of €15.
The timing of the potential overhaul for Fiat Chrysler is uncertain and a final decision may not be made until early next year.
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really take off.
See Stocks Now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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