Revisiting the Great Debate - Ford vs. GM - Barclays Picks...
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Rating Summary:
12 Buy, 23 Hold, 4 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
Rating Summary:
12 Buy, 23 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
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Barclays analyst, Brian A. Johnson, decided to take things back, way back...before the times of $4/gallon gas, before annual sales slumped from 16 mln to around 10.4 mln in 2009, and before executives went to grovel on Capital Hill for billions in bailout funds.
Johnson said, "Ultimately, while we find there to be more similarities than differences between the two companies, our current analysis leads us to believe that GM provides the better mid-term (though early 2013) investment opportunity; indeed, GM offers 46% upside to our PT of $37, while Ford offers 19% upside to our PT of $15. While GM has several near-term overhangs (Europe, China, pension) reflected in its cheap valuation of 1.2x our '12 EBITDA estimate, we believe it has better margin expansion opportunities than Ford and it is improving its management processes."
Bottom Line: Ford (NYSE: F) is better positoned near-term, able to better deal with shorter-term issues, however, longer-term, as GM's issues subside, new products and corporate balance sheet help pull GM ahead.
Barclays raises FY12 EPS of Ford from $1.50 to $1.58 and from $3.96 to $3.98 on GM.
Johnson said, "Ultimately, while we find there to be more similarities than differences between the two companies, our current analysis leads us to believe that GM provides the better mid-term (though early 2013) investment opportunity; indeed, GM offers 46% upside to our PT of $37, while Ford offers 19% upside to our PT of $15. While GM has several near-term overhangs (Europe, China, pension) reflected in its cheap valuation of 1.2x our '12 EBITDA estimate, we believe it has better margin expansion opportunities than Ford and it is improving its management processes."
Bottom Line: Ford (NYSE: F) is better positoned near-term, able to better deal with shorter-term issues, however, longer-term, as GM's issues subside, new products and corporate balance sheet help pull GM ahead.
Barclays raises FY12 EPS of Ford from $1.50 to $1.58 and from $3.96 to $3.98 on GM.
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