UBS Upgrades Ford to Buy Amid Aluminum Price Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy F?
Source: CNBC
- Investment Rating Upgrade: UBS upgraded Ford's rating from neutral to buy while maintaining a $15 price target, indicating a 23.4% upside from Monday's close, reflecting confidence in Ford's future performance.
- Aluminum Price Impact Analysis: Despite aluminum prices rising approximately 16% since the Iran war began, Ford's stock has fallen 13.7%, with analysts suggesting that market concerns over aluminum are overstated, as Ford has hedged its aluminum exposure to mitigate potential risks.
- Earnings Outlook: Analysts project Ford's earnings per share to reach $3 beyond 2027, driven by an optimized product portfolio, improved U.S. regulatory conditions, and adjustments in its EV strategy, indicating significant future profitability potential.
- Market Performance Assessment: Although Ford's stock is down 7% year-to-date, underperforming the overall market, analysts believe that the company's focus on high-margin software and emerging battery energy storage systems will provide long-term growth opportunities.
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Analyst Views on F
Wall Street analysts forecast F stock price to rise
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 12.710
Low
11.00
Averages
13.65
High
16.00
Current: 12.710
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Accelerated Decision-Making: The new structure, led by COO Kumar Galhotra, is designed to speed up decision-making, reduce complexity, and integrate Ford's electric vehicle, digital, and design efforts with its manufacturing system, thereby enhancing overall operational efficiency.
- Leadership Transition: Doug Field, Ford's Chief EV, Digital, and Design Officer, will leave next month after nearly five years, while Kieran Cahill, Vice President of Manufacturing for Europe and IMG, will retire after 37 years, marking a significant leadership transition for the company.
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- Accelerated Decision-Making: The new structure, led by COO Kumar Galhotra, is designed to speed up decision-making, reduce complexity, and integrate Ford's electric vehicle, digital, and design efforts with its manufacturing system, thereby enhancing overall operational efficiency.
- Leadership Transition: Doug Field, Ford's Chief EV, Digital, and Design Officer, will leave next month after nearly five years, while Kieran Cahill, Vice President of Manufacturing for Europe and IMG, will retire after 37 years, marking a significant leadership transition for the company.
- Future Development: Ford will continue to leverage its California-based Advanced Electric Vehicle Development team for future programs, including work led by newly appointed Vice President Alan Clarke, ensuring a source of future vehicle and technology breakthroughs.
See More
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- Executive Departure: Doug Field, Ford's chief of electric vehicles, digital, and design, is set to leave the company within a month, a move that may impact the execution of Ford's electric vehicle strategy amid ongoing executive restructuring.
- New Organizational Structure: Ford has established a 'Product Creation and Industrialization' unit led by COO Kumar Galhotra, aimed at integrating Field's responsibilities to support the company's goal of achieving an 8% adjusted EBIT margin by 2029.
- Product Refresh Plans: Ford plans to refresh 80% of its North American portfolio and 70% of its global portfolio by 2029, including a new midsize pickup based on the 'Universal Electric Vehicle' platform, indicating a proactive approach in the electric vehicle market.
- Software and Electrical Architecture: By 2030, Ford aims for 90% of its global nameplates to offer electrified powertrains, with plans to introduce updated electrical architectures and user experiences, enhancing digital services and product quality to drive the company's transformation.
See More
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- Executive Departure: Doug Field, Ford's head of electric vehicles and software, is leaving the company, with a transition period of one month, marking a significant restructuring that could impact Ford's future EV strategy.
- New Organizational Structure: Ford has established a 'Product Creation and Industrialization' unit led by COO Kumar Galhotra, aimed at integrating Field's responsibilities to achieve an 8% adjusted EBIT margin by 2029, highlighting the company's commitment to the EV market.
- Product Refresh Plans: The automaker plans to refresh 80% of its North American portfolio and 70% of its global portfolio by 2029, including a new midsize pickup based on the 'Universal Electric Vehicle' platform, indicating ongoing investment and diversification in the EV sector.
- Financial Challenges: Ford reported significant shortfalls in software revenue generation, announcing a $19.5 billion write-down last December, reflecting the substantial financial pressures faced during its EV transition, contrasting sharply with General Motors' $7.6 billion in similar charges.
See More
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- Price Range Analysis: F Company's 52-week low is $9.29 per share, while the high is $14.795, with the last trade at $12.72, indicating stock price fluctuations within this range and reflecting market caution regarding its future performance.
- Technical Indicator Observation: According to data from TechnicalAnalysisChannel.com, F Company's stock is currently above its 200-day moving average, suggesting a potential upward trend in the short term, warranting investor attention on subsequent market reactions.
- Market Sentiment Assessment: Although the current stock price is below the 52-week high, it remains above the low, indicating a degree of market confidence that may attract investors seeking stable dividends.
- Investor Focus: The fluctuations in F Company's stock price could impact its dividend policy, prompting investors to closely monitor the company's future financial performance and market dynamics to make informed investment decisions.
See More
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- Amazon Position Trimming: Jim Cramer indicated a willingness to trim the Amazon position due to its over 20% rise since March 27 and exceeding a 5% portfolio weight, aiming to protect profits and manage risk, although the fundamentals remain solid.
- Alphabet Stock Outlook: Citi analysts named Alphabet an 'upside 90-day catalyst watch' and raised its price target from $390 to $405, anticipating that upcoming events like the Google Cloud Next will drive stock price increases, with Cramer expressing optimism about the company's direction.
- Rapid Trade Review: At the end of the video, Jim Cramer highlighted stocks such as JP Morgan, BlackRock, Dow Inc., Ford, General Motors, and United Airlines, showcasing the diversity of the investment portfolio and the broad market focus.
See More
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