Wednesday, 22 April 2009 13:04
April 22 (Bloomberg) -- Ford Motor Co. rose as much as 10 percent in early U.S. trading after Goldman, Sachs & Co. advised buying the shares, citing likely bankruptcy filings for General Motors Corp. and Chrysler LLC.
Ford will gain U.S. market share from GM and Chrysler, and the stock may climb 58 percent to $6 within 6 months, Patrick Archambault, a New York-based analyst, wrote in a research report. Goldman previously had a “neutral” rating on the second-largest U.S. automaker.
“The stage is set for a sea change in the structure of the U.S. auto industry,” Archambault wrote. “We do not foresee bankruptcy at Ford, which we believe has sufficient liquidity to make it through to 2010 without additional funding.”
Ford climbed 37 cents, or 9.8 percent, to $4.17 at 7:53 a.m. before regular New York Stock Exchange composite trading. The shares touched $4.19 earlier. Ford gained 66 percent this year before today.
The Dearborn, Michigan-based automaker lost a record $14.7 billion last year and has posted annual deficits since 2005. Ford avoided the need for a federal rescue by borrowing $23 billion in late 2006. Chief Executive Officer Alan Mulally has said he expects to break even by 2011.
Ford had 15.3 percent of U.S. new-vehicle sales in March, according to data compiled by Bloomberg.