Categories: world

Ford, GM Rally as Goldman and China Warm Up two Autos

The shares in Ford Motor (F) and General Motors (GM) are outside their morning heights, but are still outperforming the…

The shares in Ford Motor (F) and General Motors (GM) are outside their morning heights, but are still outperforming the big indices following some good news from China and a research report by Goldman Sachs analysts.

According to reports, China said that it weighs the possibility of halving sales tax on automatic sales. This is the country’s automotive industry – the largest in the world – hit through major annual sales reductions. The country is looking for a way to increase new vehicle purchases and by lowering the tax rate from 10% to 5%. It hopes that it will attract new buyers.

Both GM and Ford moved higher Monday, each up 3.4% and 4.3% respectively. Fiat Chrysler (FCAU) is up 1

.5%.

While China now wants to boost its overall car market, the country also has a stock like Daimler (DDAIF) higher by 2%. been quite kind to electric vehicles (EV). In particular, China has become the world’s largest electrical and electronic components market and continues to push towards a cleaner and sustainable transport industry.

This large market has made it possible for companies like Nio (NIO) until recently IPO and Tesla (TSLA) is accelerating its timeline to build its Gigafactory 3 production facility in China.

For its part, the shares in Tesla were approximately 3% on the day. It is also the case that one of its largest investors is open to buying even more shares. Of the major car manufacturers, however, Ford leaves leading the road on Monday. It is an interesting outperformance, especially given the bad stock of this year.

But it does not stop analysts at Goldman Sachs from giving it an extra boost Monday, as they upgrade the stock from neutral to buy. They also raised their price target 33% from $ 9 to $ 12. From current levels, it means about 28% upward.

More recently, Ford has already reported revenue positively considered by Wall Street in view of the reaction. In addition, shares pay dividend yield of 6.7%, despite the stock rallying significantly from a 52 week low $ 8.17 just a few sessions ago.

By 2019, Ford’s performance would continue under pressure thanks to its North American operations, analyst David Tamberrino said, but should cure sometime next year.

Here is TheStreet’s latest trading update on the Ford share.

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