Market Overview

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

Share:
Related GM
The Most Overpaid CEOs In S&P 500 Companies That Largely Underperformed The Market
Jim Cramer On Tesla's Conference Call: 'Hilarious' And 'One For The Books'
Wall Street Breakfast: A Big Wow For The Dow (Seeking Alpha)
Related F
Luxury Electronic Carmaker Tesla Gears Up To Report Q4 Results
6 Things Elon Musk Is Working On Other Than Tesla
Pitney Bowes, H&R Block, & Mattel Lead 26 'Safe' S&P 500 Dividend Dog February Gains (Seeking Alpha)

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
Jan 2017Daiwa CapitalDowngradesNeutralUnderperform
Dec 2016BMO CapitalInitiates Coverage OnMarket Perform
Dec 2016MacquarieInitiates Coverage OnOutperform

View More Analyst Ratings for GM
View the Latest Analyst Ratings

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

 

Related Articles (F + GM)

View Comments and Join the Discussion!