Phiadvisor's Enter Long Signal on Peugeot (UG-FR)
Peugeot is a €17.8 bn market cap and the 2nd biggest automotive constructor in Europe. The Automotive Division represent 77% of revenues covering the design, manufacture and sale of passenger cars and light commercial vehicles under the Peugeot, Citroën, DS, Opel and Vauxhall brands; the Automotive Equipment Division represent 20% of sales corresponding to the Faurecia group comprising interior systems, automotive seating, automotive exteriors and emissions control technologies; and the Finance Division (3% of sales) corresponding to the Banque PSA Finance Group, which provides retail financing to customers of the Peugeot, Citroën, DS, Opel and Vauxhall brands and wholesale financing to the two brands' dealer networks. Banque PSA Finance is classified as a financial institution.
PSA proved resilient in 2020, as it is expected to post a net profit of €1.9bn (versus €3.2bn in 2019) despite the Covid-19 crisis, coupled with a €61.2bn revenues (versus €74.7bn).
Fiat Chrysler and PSA shareholders will meet on Jan. 4 to approve their planned merger and create Stellantis, the world's fourth biggest car maker in a $38 billion all-share deal, uniting brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel, Citroen and DS.
Short term catalyst: Merger with Fiat Chrysler.
This signal looks consistent with the Major Bullish Trend in the European Automotive sector.