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Pro Analysis

Buy Ford because a Trump border tax would hurt GM, Fiat Chrysler more, Barclays says

Ford Mustangs on the assembly line at the Ford Flat Rock Assembly Plant in Flat Rock, Michigan.
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Ford Mustangs on the assembly line at the Ford Flat Rock Assembly Plant in Flat Rock, Michigan.

Investors should buy Ford Motor shares because it makes more of its cars in the U.S. than do peers, insulating it from a possible potential border tax implemented by the Trump administration and GOP-led Congress, according to Barclays, which upgraded the automaker to overweight from equal weight.

"Our move to upgrade Ford is predicated on the idea that the stock will re-rate higher as investors better appreciate its relative advantages in a border adjustment scenario," analyst Brian Johnson wrote in a note to clients Friday. "Any way you look at it, Ford looks better positioned than GM and FCA (Fiat Chrysler)."

To offset a large corporate tax rate reduction, House Republicans aim to generate funds by taxing imports.