Goldman Sachs Says Lawsuit Does Not Change View On Ford

Goldman Sachs says the lawsuit against Ford F does not change its investment view. It has a $20 price target on shares, and Ford is rated at Conviction Buy. In a note to investors, Goldman writes, "While the headline number appears large, in past cases of this type it has taken several years for any award to be dispersed. Also, given the program has not had an impact on dealer P&Ls for 14 years and the potential length of the appeals process, we believe there is a possibility that both sides could settle for a lower amount. A worst case scenario, where all $2 bn was to be paid right away, would imply the elimination of $0.50 per share of equity value. In our view, this is not a material detriment to our investment view; our estimates and price target are unchanged." Shares of F are up 20 cents in pre-market trading to $13.34, a gain of 1.52%.