FCA: shares fall after UBS downgrade

(CercleFinance.com) - Investment bank UBS downgraded its rating on Fiat Chrysler Automobiles on Monday, causing a fall in FCA's share price, which is attempting to recover from a profit warning made two weeks ago.


FCA shares were down 0.5% at 12.9 euros, one of the sharpest fallers on Italy's bluechip FTSE MIB index, after UBS downgraded the stock from "buy" to "neutral."

The broker has also cut its target price from 21 euros to 14 euros.

"We downgrade to "neutral" because the remaining EBIT growth is insufficient to drive outperformance,” UBS said in a research note, after doing a "deep-dive" why FCA disappointed with its fourth-quarter and 2019 outlook.

For the record, Fiat Chrysler Automobiles forecasts 2019 earnings that are slightly above last year's numbers, which has resulted in the car maker's shares falling by over 10% over the past month.

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