UBS on U.S. Autos: Q2 Preview - With Europe Priced In, Ford Offers Better Risk/Reward Than GM

UBS on U.S. Autos: Q2 Preview - With Europe priced in, Ford offers better risk-reward than GM

Analyst, Colin Langan, said, "Since Ford (NYSE: F) cut its Q2 guidance on 6/28 to reflect Europe weakness, the stock has underperformed GM (NYSE: GM) by ~7.4%, offering a slightly better risk-reward going into Q2...While we expect Ford to lower 2012 guidance for lower EU profits, its second half results should be helped by lower launch costs, higher US share (Fusion, Escape launches), and better EU production (lowered inventory in Q2)."

Langan's Q2 EPS estimate for Ford is $0.26; GM is at $0.65.

Ford's FY12 EPS estimate is lowered from $1.45 to $1.30 and GM's is cut from $3.60 to $3.10.

Both stocks are rated at 'Buy'.

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