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US Auto Sales in October 2017: Solid Growth for Ford and Toyota

PART:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Part 7
US Auto Sales in October 2017: Solid Growth for Ford and Toyota PART 7 OF 15

Analysts’ Views on GM and Ford, Post-October Sales Results

Analysts’ views on US auto giants

According to 2016 US sales data, General Motors (GM) and Ford Motor (F) are the two largest auto companies in the United States. Reuters’s latest data shows that only 17% of the 24 analysts covering both companies have recommended “buy” for Ford, whereas 42% ohave recommended “buy” for GM. Of the remaining recommendations, 50% and 75% were “hold” for GM and Ford, respectively, and 8% were “sell.”

Analysts&#8217; Views on GM and Ford, Post-October Sales Results

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Consensus 12-month target prices

As of November 7, analysts’ 12-month consensus target price for Ford was $12.72, ~4.6% higher than its market price of $12.16. Analysts’ consensus target price for GM was $46.52, ~11.6% higher than its market price of $41.70. A lower percentage of analysts are recommending “buy” for GM and Ford stock in November than in October.

As of November 7, Ford stock had risen marginally, by 0.2%, in 2017, while GM’s stock had risen ~19.7%. Meanwhile, the S&P 500 (SPY) had risen 15.7%.

Ford versus GM

Overall, analysts are more optimistic about GM stock than Ford stock, which could be due to GM’s consistently improving profit margins and high US retail market share (IYK). Continue to the next part, where we’ll compare GM’s and Ford’s valuation multiples with Fiat Chrysler Automobiles’ (FCAU).

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