JPMorgan Bullish on GM (GM) and Ford (F), Bearish on Tesla (TSLA)

JPMorgan analyst Ryan Brinkman weighed in on U.S. automakers Monday saying he sees "attractively deep value" in General Motors (NYSE: GM), he likes Ford (NYSE: F) while he is cautious on Tesla (NASDAQ: TSLA). The firm lifted price targets on all the stocks as they introduce 2016 estimates and roll-forward valuation.

• GM (Overweight) price target lifted from $50 to $51
• Ford (Overweight) price target lifed from $21 to $22
• Tesla (Neutral) price target lifted from $170 to $190

"We reiterate our Overweight ratings on both GM and Ford, seeing more value in automaker stocks than in supplier stocks generally, on earnings that are growing almost as quickly as the average supplier over our newly extended forecast window (and at least as structurally improved relative to history) but valuation which is only in line with historical average (Ford) or even significantly below (GM)," Brinkman said.

Meanwhile, on Tesla he said, "We are more cautious on Tesla, however, with our Neutral rating balancing incremental news flow likely to track positive with valuation that appears stretched and execution and competitive risk that seems underappreciated."

On GM, the firm is positioned +8% above the Street in 2016. "We forecast 2016 EPS of $5.20, well above Bloomberg consensus of $4.82, on volume gains across most regions and a focus on structural costs in North America (we expect North America structural cost opportunity to be a focus of the firm’s upcoming analyst day October 1)," he said.

On Ford, the firm is positioned +3% above the Street in 2016. "We forecast 2016 EPS of $2.23, modestly above Bloomberg consensus of $2.16, on volume gains across most regions, a full year of F-150 production mostly offset by softer pricing as the vehicle is no longer brand new, and strong growth in China and India as new plants come online and the product portfolio broadens," the analyst commented.

For an analyst ratings summary and ratings history on General Motors click here. For more ratings news on General Motors click here.

Shares of General Motors closed at $33.94 yesterday.

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