2019 Ram 1500 pickup truck of the Fiat Chrysler Automobiles (FCA) is displayed at the North American International Auto Show (NAIAS) on January 15, 2018 in Detroit, Michigan.
The Asahi Shimbun | Getty Images
Automaker Fiat Chrysler’s stock fell more than 4% Tuesday after Goldman Sachs initiated the company’s stock at a sell rating, citing growth concerns in North America and challenges in Europe for its opinion.
The investment bank set a price target of 11.50 euros ($12.90) giving the company a 7% downside.
“North America accounts for a disproportionate percentage of FCA’s earnings. Additionally, it was the principal driver of FCA’s earnings improvement over the last ﬁve-year business plan. However, we do not forecast the company’s earnings in North America growing through its next ﬁve-year (2018-22) plan,” said Goldman analyst George Galliers, in a research note.
North American sales accounted for 93% of the company’s adjusted earnings before interest and tax in 2018.