Ford Hits Speed Bump After Goldman Report
NEW YORK (TheStreet) - Ford Motors
Ford closed Tuesday down 3.7% to $16.5 a share, paring its 2013 advance to 27%.
Goldman replaced Ford with General Motors
Goldman analysts said General Motors represents better "near-term" value for investor than Ford. "We estimate the refresh of GM's high volume and high margin truck platform the K2xx could drive as much as 1% margin accretion from pricing alone," wrote the analysts led by Patrick Archambault. The equity value of GM is expected to increase by $6 billion.
The report added that even though "both GM and Ford have strong product driven growth stories," Ford faces legal obstacles. Seattle-based consumer-protection law firm Hagens Berman Sobol Shapiro announced a class-action lawsuit on Ford on Monday seeking compensation for Ford, Lincoln and Mercury owners who experienced defective MyFord Touch touchscreen systems in their vehicles.
"The system is fundamentally flawed, failing to reliably provide functionality, amounting to an inconvenience at best, and a serious safety issue at worst," said Steve Berman, managing partner of Hagen Burman
Ford is scheduled to announce its second-quarter earnings on July 24th.
-- Written by Robert Arenella in New York
>To contact the writer of this article, click here: Robert Arenella.