Santander Consumer US (NYSE:SC) +3% after Susquehanna analyst Jack Micenko says in a note that the financial firm's Chrysler Capital unit is valued at about $1.2B, assuming a 6x earnings multiple.
SC's "scarcity value" may be worth even more, Bloomberg reports, citing Micenko's note to investors.
Fiat Chrysler (NYSE:FCAU) announced on June 1 that it would form a U.S. finance arm and would consider buying Chrysler Capital from SC. That would be the best fit for FCAU to retain flow agreements as it related to future subprime loan production at the new captive, Micenko says.
Previously: Fiat Chrysler to bring U.S. financial services in-house (June 1)