Fiat Joint Venture Tofas Gains on New Model Plan: Istanbul Mover
The shares rose 1.9 percent, the most on a closing basis since Jan. 24, to 10.55 liras at 4:07 p.m in Istanbul. The benchmark index fell 1.1 percent.
Tofas in July will disclose details of two models set to go on sale after 2015, which may carry the company to full production of 400,000 vehicles a year, Chief Executive Officer Kamil Basaran told a news conference Feb. 8. The joint venture also plans to sell its “Doblo” van in the U.S. starting from the end of next year, Basaran said.
“There was previous mention of a new model, but this is the first time a time frame is mentioned,” Esra Suner, vice president of research at Is Investment in Istanbul, said by phone today. The models should have a positive effect on the stock over the long term, she said.
Tofas was also raised to overweight from neutral at HSBC by analyst Cenk Orcan today, raising the price target to 12.7 liras from 10.1 liras, according to data compiled by Bloomberg. Eleven analysts have a buy rating on the stock, 15 say hold and one recommends selling it, the data show.
The automaker has a 13.2 percent domestic market share with the Fiat brand as of the end of 2012, according to a presentation on its website. The “Linea” model is the best- selling sedan in Turkey, while “Doblo” is the best-selling light commercial vehicle, the company says in the presentation.
Tofas reported 2012 net income of 448.3 million liras ($252.6 million) after markets closed on Feb. 6, above the 445.6 million liras average estimate of 21 analysts on Bloomberg.
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