Fiat Chrysler Automobiles shares climbed to a record last night after Morgan Stanley analysts said they saw "substantial hidden value" in several of the company's brands that could emerge from spin-offs or sales to other automakers.
According to Bloomberg, Morgan Stanley analysts led by Adam Jonas wrote they value the Jeep division at EUR14.7 per share, more than the company's EUR10.62 closing price in Milan Monday. Ram was worth EUR6.1 a share while Fiat Chrysler's management and board had "taken to heart" the lessons learned from separating Ferrari from the company, Jonas reportedly said.
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Bloomberg said Fiat Chrysler's US-listed shares surged 8.5% to $12.60, the highest close since trading began in October 2014. The stock has jumped 38% this year.
The report noted CEO Sergio Marchionne told analysts last month the company would evaluate whether to separate from some of its businesses as part of a strategic plan he'll unveil in early 2018, his last major project for the carmaker before planning to retire the following year. Marchionne, 65, also is CEO of Ferrari, which is now valued higher than its former parent company.
According to Bloomberg, the Morgan Stanley report said it could make sense for Fiat Chrysler to partner with a Chinese company. Automotive News had reported Monday Fiat Chrysler had rejected a bid by an unidentified Chinese carmaker that offered a small premium to the company's market value.
Fiat Chrysler representatives declined to comment to Bloomberg on that report.
