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Citi Maintains a 'Sell' on GM/Ford Shares; Sees Opportunities in Few Suppliers

November 24, 2008 8:29 AM EST
GM Hot Sheet
Rating Summary:
    16 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 8 | New: 15
Citi Maintains a 'Sell' rating on GM and Ford, but sees opportunities in certain suppliers.

Citi analyst says, "We remain Sellers of General Motors (NYSE: GM) and Ford (NYSE: F) shares on unfavorable risk/reward. Given our concerns on automaker liquidity coupled with overall tight credit conditions, our focus remains on suppliers with business diversification, liquidity, restructuring momentum, technological advantages in fuel economy/emissions, and attractive valuations. While we see limited catalysts in the near term, BUY-rated BorgWarner (NYSE: BWA) remains our favorite long-term stock followed by Goodyear (NYSE: GT) and Magna (NYSE: MGA). Our one speculative buy in autos remains American Axle (NYSE: AXL), which could be wellpositioned in a successful GM bailout outcome after the supplier recently successfully amended bank debt covenants."

General Motors Corporation (GM) is engaged in the worldwide development, production and marketing of cars, trucks and parts.

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