UBS Upgrades Ford to Buy Rating, Sees Strong EPS Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy F?
Source: seekingalpha
- Earnings Growth Potential: UBS analyst Joseph Spak and his team project Ford's earnings per share (EPS) could exceed $2 by 2027, with a credible path towards $3 thereafter, indicating that the company's earnings power is undervalued by the market due to its product portfolio and EV strategy.
- Positive Market Reaction: Ford's shares rose 4.4% in the first half hour of trading on Tuesday, reflecting a positive market response to UBS's upgrade, which may attract more investor interest in the company's growth prospects.
- Underestimated Cost Pressures: Despite recent concerns over rising gasoline and aluminum prices, UBS believes these factors have been overstated regarding their impact on Ford's 2026 performance, as the company has hedged against aluminum price increases, showcasing its cost management strengths.
- Optimistic Future Outlook: UBS notes that the market is currently pricing Ford's 2027 EPS at $1.73, which is 16% below their forecast, indicating that investors are not fully recognizing Ford's ability to overcome short-term headwinds expected to dissipate in the coming months and its long-term earnings potential.
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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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