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Pension Settlement Deal Could Give General Motors and Ford a Boost, Analyst Says

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On Tuesday, Bank of America released some bullish comments on General Motors (NYSE: GM) and Ford (NYSE: F).

Analyst John Murphy believes a “realistic” time frame for the companies to reach pension settlement agreements would be in summer 2015, in confluence with negotiations with the United Auto Workers, whose contract is set to expire August 2015.

The analyst said to reach pension settlement agreements, 10 percent overfunding of pension obligations will be needed, which would cost General Motors $14.5 billion and Ford $6 billion.

Shares of General Motors and Ford are down 1.5 and 0.26 percent respectively.

Latest Ratings for GM

DateFirmActionFromTo
Aug 2016Seaport GlobalInitiates Coverage onBuy
Aug 2016JefferiesInitiates Coverage onHold
Jul 2016CitigroupMaintainsBuy

View More Analyst Ratings for GM
View the Latest Analyst Ratings

Posted-In: Bank of America John MurphyAnalyst Color News Legal Analyst Ratings

 

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