Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Banc Of America Downgrades GM and Ford


Banc Of America downgrades General Motors (GM) and Ford (F) to sell from neutral.

Analyst Ronald Tadross says he's looking at the company's 3-year cost-of-ownership indicates GM continues to suffer about a 15% disadvantage, vs. major competitors. He thinks this could widen.

He thinks the current strategy of trying to raise prices exacerbates this, yet a strategy of reducing prices would hurt earnings further. He believes a turnaround plan would be difficult to execute and a bond rating downgrade would further pressure resale values.

Tadross doesn't think new truck volumes in 2006-2007 will be enough to offset challenges. He cuts his $3.50 2005 earnings per share estimate to $3.00 and his $32 target to $27.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus