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Zacks Analyst Interview Highlights: General Motors, Ford and Honda Motor Company

CHICAGO, May 06, 2008 (BUSINESS WIRE) -- Zacks.com releases the latest Analyst Interview. Today's interview
is with senior analyst Paul Raman, who discusses General Motors (NYSE:
GM), Ford (NYSE: F) and Honda Motor Company (NYSE: HMC).

A synopsis of today's Analyst Interview is presented below. The
full article can be read at http://at.zacks.com/?id=2678.

What did you think of the first quarter earnings results for
General Motors, overall?

General Motors (NYSE: GM) management's increased focus on the Asia
Pacific region, enhancement of the product portfolio, and aggressive
cost cutting are some of the positives in the company's story.
Further, the recent negotiation reached with the UAW (United Auto
Workers union) is a major milestone achieved by the company. This new
contract will make GM more competitive and will ensure its strong
presence in the U.S.

However, weak North American sales, falling production volumes,
and rising raw material costs increase our concerns. These compelled
us to rate the shares Hold with a six-month target price of $21.00.

The Ford Motor Company also recently reported. What did you find
here?

Ford's (NYSE: F) "Way Forward" plan undertaken to restore
profitability of the North American automotive business, its new
products, profitable financial services business, and cost reduction
efforts are some of the positive factors affecting the company. But
despite profits in the first quarter of 2008, Ford expects losses for
the full year 2008 due to the difficult operating environment.

Under the new "Way Forward" North American revival plan, Ford is
planning to expand its Ford, Lincoln, and Mercury brands and to
introduce hybrid versions of such cars during 2008-2010. Ford is
expected to produce 250,000 hybrids annually by 2010, and an
additional 250,000 E85 vehicles.

The company's near-term focus is the new Ford ECOnetic line of
ultra-low CO2 emission cars and bio-ethanol powered Flexifuel
vehicles. It is also working on a range of affordable new petrol
engines under the name Ford EcoBoost.

On which other automakers have you recently updated your research
report?

Honda Motor Company (NYSE: HMC) is expanding its business in Asia,
growing its global network to increase efficiency and introducing new
products to satisfy local markets. Further, capacity expansion plans
in Asia, a new sales strategy in Japan, and the proposed launch of
Acura in Japan inspire optimism about Honda's future prospects.

However, unfavorable currency exchange rates, flat-to-lower sales
in North America and increased competition will threaten HMC's global
competitive position. Therefore, we maintain our Hold rating with a
six-month target price of $33.50.

Zacks "Profit from the Pros" e-mail newsletter provides highlights
of the latest analysis from Zacks Equity Research. Subscribe to this
free newsletter today by visiting http://at.zacks.com/?id=2679.

About Zacks

The performance of the Zacks Rank portfolios for annual and
year-to-date periods are the linked monthly total returns (price
changes + dividends) of equal weighted hypothetical portfolios,
consisting of those stocks with the indicated Zacks Rank, assuming
monthly rebalancing and zero transaction costs. These are not the
returns of actual portfolios. The hypothetical portfolios were created
at the beginning of each month from January 1988 forward based on the
values of the Zacks Rank available to Zacks' clients before the
beginning of each month. The portfolios created monthly from 1988
through September 2006 exclude ADRs and are comprised of stocks that
have the indicated Zacks Rank and were covered by at least two
analysts at the time of the stocks inclusion in the portfolio.
Starting in October 2006 and going forward, the portfolios are
comprised of all stocks with the indicated Zacks Rank and do not
exclude ADRs, which is more reflective of the list of stocks that
customers will find on the Zacks web sites. These performance numbers
have been audited from 1995 through 2003 by Virchow, Krause & Company,
LLP.

Visit http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an offer
or solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com
Mark Vickery
Zacks Web Content Editor
312-265-9380
Visit: www.zacks.com

Copyright Business Wire 2008


 
 

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