Fiat Chrysler (FCAU) Stock Higher Today After Morgan Stanley Said Buy Shares To Get Ferrari

NEW YORK (TheStreet) -- Shares of Fiat Chrysler Automobiles NV (FCAU) are up 5.36% to $12.30 after Morgan Stanley analyst Adam Jonas said existing investors will receive one share of Ferrari and one share of Fiat Chrysler for each Fiat Chrysler share after the Ferrari IPO.

Ferrari stock will be a boon to investors because of its growth potential, as it is expected to ship 8,600 units by 2018, up from 6,900 this year, Jonas said, adding that untapped growth potential combined with a lack of cyclical issues support a higher level of valuation.

Additionally, there is a "gold mine of opportunities and a lot of potential to capitalize on both the Ferrari name and Formula 1 brand," Jonas added.

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Fiat Chrysler, the Italian-American automobile maker that owns Jeep, Dodge, Alfa Romeo and Maserati, plans to separate Ferrari via an initial public offering in 2015 to unlock $1 billion in funds for Chief Executive Sergio Marchionne to work with, according to MarketWatch.

FCAU Chart FCAU data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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