NewsDJ MARKET TALK: Fiat Auto Margins Worry - Sanford Bernstein
10/26/06 - Dow Jones Newswires
1142 GMT [Dow Jones]--Fiat (FIA) auto manufacturing margins remain a key issue says Sanford Bernstein analyst Stephen Cheetham. Notes the company beat estimates with 3Q auto trading profit, but with revenue up 28%, "Once again, good sales data failed to translate into profit...Profitability remains poor in absolute terms with operating margins below 1%." With the market now pricing-in a recovery, says Cheetham, "We believe Fiat stock is riskier than ever since the fundamentals have not changed...Fiat Auto remains the weakest indigenous competitor in a viciously competitive industry." Retains underperform rating, EUR6 price target. Shares -1.8% to EUR13.83. (KYM)
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(END) Dow Jones Newswires
October 26, 2006 07:42 ET (11:42 GMT)
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