Ford, GM: Morgan Stanley Likes ‘em (Especially GM)

Ford, GM: Morgan Stanley Likes ‘em (Especially GM)

  • Posted Wednesday, July 06, 2011 -
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Reuters

Morgan Stanley raises its outlook on autos and auto-related stocks to attractive from in-line, noting that market expectations and share prices "have fallen sufficiently" to offer a significantly improved next 12-month risk-reward outlook.

The investment bank says four factors drive its upgrade: seasonally adjusted US expectations have fallen sharply; fears of Japanese price war are overdone; fears of mix deterioration are overdone; and poor stock performance reflects significantly lower sentiment.

General Motors replaces Ford as firm's 'top pick.' GM climbs 1.2% to $31.24 premarket. Ford is indicated modestly higher.

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