ISI Group Sees Ford, GM Returning to Profit in 2015, Starts Ford at Strong Buy, GM at Hold

In a report published Monday, International Strategy & Investment (UK) Limited analyst George Galliers initiated coverage on Ford Motor Co. F with a Strong Buy and General Motors Company GM with a Hold. ISI initiates a $22.00 and $45.00 price target on Ford and General Motors, respectively. Galliers commented, "We believe Europe will deliver the greatest tailwind to earnings at Ford and make a substantial contribution at GM, over the next two years. An improving market combined with restructuring should see both Ford and GM return to the black in 2015. Given substantial losses today, the swing will prove material." ISI estimates $1,765 million for Ford and $908 million for General Motors by 2015. The analyst noted that German and UK markets exposure is likely to support Ford and Opel market share near-term. Galliers estimates that Ford of Europe's C/D segment sales will grow by 116.9% through 2015. ISI forecasted $1.8 billion+ive swing for Ford from the restructuring in Europe. General Motors is expected to have a strong 2014 with a forecasted $0.9 billion+ ive swing from Europe in 2015. The analyst added that China at-equity income will continue to grow with c30% of group automotive earnings. Ford Motor Co. closed at $16.07 on Friday and shares have traded as high as $16.52, up 2.8%. Shares of General Motors closed at $40.03 and are currently down 1.46% at $39.44.