Tuesday, July 16, 2013

UPDATE: Goldman Sachs Downgrades Ford Following Removal from Conviction List

In a report published Tuesday, Goldman Sachs analyst Patrick Archambault downgraded?Ford?(NYSE: F) from Conviction List Buy to Buy, but raised the price target from $17.00 to $20.00.

In the report, Goldman Sachs noted, ?We remove shares of Ford from the Americas Conviction Buy List but maintain our Buy rating with 18% upside to our new $20, 12-month price target. We remain Buy rated but note Ford has out-performed GM by 10.6% since the beginning of May, which, in our view, has shifted the risk-reward in favor of GM where we believe expectations are still quite low. Second, GM's has some important positive catalysts that are now within striking distance, such as a re-acceleration of margins by 2H13 and a possible common dividend later this year. We note we see 2Q13 as likely to be a non-issue for Ford and GM where we are 4% and 6% above consensus vs. average sector upside of 6%. Since we added Ford to the Conviction List on January 10, 2013 shares have risen 23.8%, vs. the S&P 500 up 14.3%. In the past 12 months the shares are up 84.7% vs. up 24.0% for the S&P 500.?

Ford closed on Monday at $16.98.

Source: http://www.benzinga.com/analyst-ratings/analyst-color/13/07/3756678/update-goldman-sachs-downgrades-ford-following-removal-f

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