Tags: Citi | Ford | GM | Shares

Citi Analyst Sees Room to Rise for Ford, GM Shares

Thursday, 29 March 2012 09:53 AM

An analyst added Ford to Citi's top picks of stocks, saying the automaker should benefit from improving demand in the U.S., new car launches, and other factors.

Analyst Itay Michaeli also wrote that Citi is slightly more positive on General Motors shares, too. Both companies kept their top (but high-risk) rating and previous price targets.

Michaeli wrote that Americans are, for the first time, looking to buy more cars than what they need just to replace old ones. That hasn't shown up yet in auto sales figures, which are still running at recessionary levels, Michaeli wrote.

He raised his estimate for this year's North American production to 14.3 million vehicles, from 13.8 million. He raised his 2013 estimate to 15 million, from 14.5 million.

He also upgraded parts maker Delphi Automotive PLC to "Buy." Delphi gets 45 percent of its revenue from Europe, but Itay wrote that it has performed well anyway. He raised his target price to $36 per share, from $25. Delphi shares closed at $31.56 on Wednesday.

Shares of Ford Motor Co. closed on Wednesday at $12.32. General Motors Co. shares closed at $25.15.

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Thursday, 29 March 2012 09:53 AM
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