Morgan Chase analysts on Wednesday initiated coverage of the U.S. auto industry. JP Morgan analysts said in a report wrote to the company’s customers, the U.S. auto manufacturers have almost gotten rid of the 2009 crisis, thus, it rated the stocks of General Motors Corporation (GM) and Ford Motor Company (F) as “overweight.”
JP Morgan analysts said General Motors has entered into the global growth market, and the company is continuing to reform operations to improve the products rhythm. These factors is the reason why analysts rated GM stock as “overweight”. In addition, JP Morgan analyst rated Ford’s stock as “overweight”, given that Ford’s management strategy, the high profit of North American business, and the Chinese market which is late entered but actively promoted.
Analysts wrote in the report that their optimistic expectations are on the basis of full consideration on several factors, including challenging environment in Europe, the most healthy condition of the North American automotive industry over the past decade, and the significant opportunities in the emerging markets. JP Morgan Chase analysts set a stock price target of $29 for General Motors stock and $13 for Ford.