Ford Motor Co. and General Motors Co. shares are “historically cheap,” but that’s not the only reason to buy them.
Pressures on the carmakers’ business “have created ‘peak pain,’ yielding trading multiples at historical lows,” Levy said. “While we acknowledge The analyst also raised his price target on the stocks to $37 for GM and $14 for Ford, representing upside of about 30% and 40%, respectively. GM is his preferred stock over Ford, as “sentiment is more depressed at GM with greater opportunity for recovery.”The autoworker strike, which lasted six weeks, hit several factories and facilities of Ford, GM and Stellantis NV STLA, +1.65%.
Suppliers’ stocks have been pressured “by weak macro, EV challenges, margin questions,” all of which have led to “muted” investor interest on the stocks, Levy said.Among his preferred supplier stocks, rated a buy, are Aptiv Plc APTV, -2.13%, BorgWarner Inc. BWA, -0.46%, Lear Corp. LEA, -0.92% and Adient Plc ADNT, -1.48%, which offer opportunity alongside attractive cycle upside, the analyst said.“We appreciate that owning Ford/GM on the basis of cheap valuation has generally not worked.