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

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.