| Videos | Channels | Search |
Pick your car stocks carefully
Shares recently surged on speculation it is close to buying the rest of its US unit of Chrysler. It would then merge the two manufacturers to create the world's seventh-largest auto group by sales. One more reason why analysts have raised their forecasts for the Italian carmaker's operating income.
Saxo Bank's Peter Garnry tells Saxo Tv's Sara Walker the stock looks ridiculously cheap and with the expected return on invested capital currently at 13.2 percent Fiat should trade much higher.
Global car sales have seen steady growth - running at their highest level since early 2007.
One company looking to take advantage of this is Tesla, but Peter says the electric car maker is set for a fall. He says its valuation is extremely high.
01:15 minutes
Tags: analysts, auto group, automobiles, autos, car sales, car stocks, carmaker, cars, chrysler, electric car, equities, fiat, forecasts, growth, operating income, peter garnry, quant corner, return on invested capital, roic, sales, sara walker, saxo bank, saxo tv, shares, stock, tesla, tradingfloor.com, valuation, video