NEW YORK (TheStreet) -- Shares of Fiat SpA (FIATY) are down -7.79% to $10.65 after analysts questioned whether it could achieve the targets of CEO Marchionne's new strategy for the automaker, and how the plan would be funded, Reuters reports.
Trading was briefly suspended in Milan after the shares dropped over 9%.
Under the plan, outlined in 10 hours of analyst meetings, Marchionne pledged to multiply sales, raise profitability and slash debt by 2018, while investing $67 billion in a global expansion led by the Jeep, Alfa Romeo and Maserati brands, according to Reuters.
"These targets were almost unnecessarily bullish, leaving multiple execution challenges - even if they won't be tested for several years," said Citigroup (C) analyst Philip Watkins.Watkins noted that quarterly earnings reported late yesterday were a "major disappointment" that served to underline the challenge Must Read: Warren Buffett's 10 Favorite Growth Stocks
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts