Ford Upgraded On The View That It's In a Good Position For Tax Reform

By Tonya Garcia Markets MarketWatch Pulse

Ford Motor Co. was upgraded Friday to outperform from sector perform at RBC Capital Markets on the view that the auto maker is in a better position than General Motors Co. for tax reform. Seventy-two percent of Ford's production volume is in the U.S. while only 62% of GM's is in the U.S. "Considering border-adjustability along with other factors such as a lower corporate rate and capex deductibility, Ford believes that it comes out neutral to positive and better than competition," RBC wrote in a note. "We agree." RBC analysts also believe that the next Ford earnings revision "skews to the upside." Ford shares are up 0.9% in premarket trading, and up 4.4% for the past year. The S&P 500 index is up 22% for the last 12 months.

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