Ford Motor Company (NYSE:F) has been doing well since it introduced new truck line some time back. Its continuous good performance has prompted Goldman Sachs Group Inc (NYSE:GS) to place it in ‘Hot Stock’ list. At the same time, GS believes that the momentum of General Motors Company (NYSE:GM) is slowing down with time; hence, investors should sideline it for some time.
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The announcement was made by Goldman Sachs in a research note published on Wednesday. In the previous year, Ford stock dangled from General Motors’ stock while, in the current year, it hasn’t increased much, even after Auto sector witnessed a reasonable growth. Even though, numbers don’t support Ford Motors as of now, but Goldman Sachs thinks differently.
As per the reports, Goldman envisages that the market conditions are about to change and that Ford Motor Company (NYSE:F) will touch newer heights by the end of 2015, not General Motors. Keeping all these points in mind, Goldman Sachs has improved Ford’s rating from ‘neutral’ to ‘buy.’ It has also surged the 12-month price target on Ford’s shares to $19. It’s 25% more than the price level of $15.29 where Ford ended its day on Tuesday.
Talking about General Motors, the leading investment bank said that it was slowing down due to internal issues. At the same time, calling back of its cars also played a significant role in company’s downgrading. Engineers found some technical issue with General Motors, which caused a few life as well. The company had to call more than a million cars across different markets to ensure that the technical issue didn’t cause anyone else his/her life.
Goldman Sachs considers the next few quarters to remain unchanged for General Motors Company (NYSE:GM). Unless it alters its way of working in an effective way, things are unlikely to change for the company.