ຂະຫນາດຂອງຂໍ້ຄວາມ
Better profits at Ford can power the stock forward in years to come, says analyst.
ຮູບພາບ Scott Olson / Getty
Ford Motor
stock picked up an upgrade to Buy. Business execution is improving and Wall Street hasn’t caught up yet with what’s possible. That’s an opportunity.
Jefferies analyst Philippe Houchois upgraded
Ford
(ticker: F) stock to Buy from hold, Tuesday. His price target went to $16 from $13 a share.
Houchois came away from Ford’s May 22 investor event in Dearborn, Michigan with more confidence the company can “close a deficit of execution that has dogged shares for years.” Better execution should lead to better profits down the road.
Better business focus is one way Ford plans to improve execution. Ford recently reorganized itself into three new business units: Model e which is the company’s EV business, Ford Blue which is the traditional gasoline powered business and Ford Pro which is the company’s commercial business.
Ford believes the new operating structure can produce operating profit margins of 10% by 2026. Wall Street expects operating profit margins of about 6% in 2023. And the Street projects operating profit margins of about 5% in that year. No real improvement is predicted and that gap is attractive to Houchois.
The Buy rating has Ford shares moving, up about 2.8% in premarket trading Tuesday at $12.43 a share.
S&P 500
ແລະ
Dow Jones Industrial Average
ອະນາຄົດແມ່ນເພີ່ມຂຶ້ນປະມານ 0.6% ແລະ 0.3% ຕາມລໍາດັບ.
With Tuesday gains included, Ford’s market capitalization is about $2.8 billion more than
Motors ທົ່ວໄປ
(GM). Ford’s cap overtook GM in early April. That’s rare. Ford’s market cap has only been greater than GM’s about 14% of the time over the past five year.
Tesla
(TSLA) helped push Ford further past GM this past week when Ford announced on Thursday evening that its EV drivers would be able to use
Tesla
‘s supercharging network in 2024. Ford stock gained 6.2% Friday. Tesla stock gained 4.7% and GM shares added 2.7%.
Overall, the Street is still lukewarm on Ford shares with just under 40% of analysts covering the company rating shares Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 53%.
At the start of 2023, just over 40% of analysts rated Ford stock Buy. Rising interest rates and declining vehicle affordability have sapped some enthusiasm for shares.
The average analyst price target is about $13.70.
Coming into Tuesday trading, Ford stock is down about 12% over the past 12 months. The S&P 500 is up about 2% over the same span.
ຂຽນໃສ່ Al Root ທີ່ [email protected]
Source: https://www.barrons.com/articles/ford-stock-analyst-buy-608f1c5c?siteid=yhoof2&yptr=yahoo