UPDATE: Goldman Sachs Upgrades Ford Motor Company to Conviction Buy, Reiterates $17 PT

In a report published Friday, Goldman Sachs Group upgraded its rating on Ford Motor Company

to Conviction Buy, and reiterated its $17.00 price target. Goldman Sachs noted, “We are adding Ford shares to the Americas Conviction Buy list, with 23% upside to our $17 price target. Following broad-based estimate revisions we have made to the space Ford now screens as having the highest 3-year EBITDA CAGR in our coverage (+17%). We see this driven by operating improvements in all 4 regions: In North America we see growth driven by recent capacity additions and the opportunity from pickup demand, In Europe we see equally important tailwinds from the most aggressive restructuring plan among the OEMs, and in Asia and Latam we also see material profit accretion from increasing scale and new product. We think Ford's forward product cycle outlook is underrated. While we estimate GM will have a fresher portfolio in NA post the launch of the K2xx, we estimate Ford will continue to edge out GM in terms of vehicle age on a global basis.” Ford Motor Company closed on Thursday at $13.47.