Ford stock hasn’t exactly been at the top of anyone’s must-buy list for some time after many quarters of disappointing performance. But now, it appears that The Blue Oval has found a new ally in Argus Research analyst Bill Selesky. That’s because this week, Selesky raised his rating for Ford stock from hold to buy, citing expectations for increased consumer spending in the coming months.
As if that wasn’t bullish enough, Selesky also raised his Ford stock price target to $14, which matches the highest target among 18 analysts surveyed by FactSet. Of those 18 analysts, five have now given Ford stock a buy rating, 11 a hold, and two a sell. The average price target is currently $11.34.
“Our upgrade reflects our expectations for stronger consumer spending, helped by a new round of stimulus payments, low borrowing costs, and saving rates that have reached all-time highs,” Selesky said. “We also expect consumer spending to benefit as more coronavirus vaccines are approved and distributed.”
Ford’s stock has rallied quite a bit in the last three months, gaining 41 percent in that time frame. Despite a disappointing result in Q4 of 2020, the automaker has said that it expects to bounce back in Q1 2021 and recently announced plans to double its investment into electric and autonomous vehicles, which is giving investors reason for optimism.
Additionally, the automaker has a host of new and exciting products to add to its lineup this year, including the 2021 Ford F-150, 2021 Ford Mustang Mach-E, 2021 Ford Bronco and Ford Bronco Sport, to name a few. Thus far, the 2021 F-150 has been exceeding sales expectations, and there are indications that both the Bronco Sport and Mach-E will follow suit in the coming months.