Goldman Sachs says buy Ford stock, dump GM - CNNMoney
Ford will be the company with superior growth now, not GM. That's why Goldman upgraded Ford to "buy" from "neutral" and raised its 12-month price target on the auto maker's shares to $19. That implies about a 25% upside from Ford's closing price... Trucks to power Ford ahead: The big auto call is based on the fact that there are two key differences between Ford and GM -- and both favor Ford. First, Ford is one year behind GM in its truck refresh. That process is entering primetime now, headlined by the new aluminum body F-Series that is priced competitively and likely to entice customers to switch to Ford from other automakers. The new F-150 is poised to launch later this year, potentially stealing sales from GM. By comparison, GM has already refreshed its pickups. That's why Goldman believes GM's North American profitability has likely peaked and is subject to slight declines through 2018. Ford, on the other hand, could enjoy a big bump in North American profits. That's bad news for both auto makers, but especially GM. It owns 14% of the market share there, versus just 4. 5% for Ford. "Ford is less vulnerable to a softening China," Goldman wrote. Ford also has more room to grow in that key market. Source: money.cnn.com
