Two major automakers have caught the eye of UBS as a new analyst takes over coverage of the sector. Analyst Joseph Spak starts his coverage of Ford and General Motors with buy ratings. Before he became the analyst covering the industry, UBS had a sell rating on Ford and neutral rating on GM. Both stocks have underperformed the S & P 500 this year. His $15 price target for Ford implies an upside of 20.5% over Tuesday's close. Ford, which climbed 1.
He said the pro software should provide long-term upside, with upgrades considered easier to ask for because they are tied to return on investments. Spak noted that the company has an approximately $20 billion opportunity through upgrades and price increases. On the other hand, GM shares have "concerns priced in and overdone in our view," he said. Despite adding 1.1% in Wednesday premarket trading, GM is down 0.5% year to date. Spak's $44 price target for shares signals a 31.
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Source: CNBC - 🏆 12. / 72 Read more »