Ford stock hasn’t exactly been a favorite of Wall Street in recent years, though things have changed dramatically over the last several months. In February, analysts started changing their tune in terms of Ford’s ratings and price targets. Ford stock began to surge as the automaker’s commitment to electric vehicles won over investors, and outlooks continue to improve as the year has gone by. Ford shares reached a 20-year high of $19.72 back in November, and have grown even more in the ensuing weeks as the company’s market cap exceeded General Motors for the first time in five years. As a result, Citigroup analyst Itay Michaeli has risen his Ford stock price target once again, according to Barron’s.
“We are raising our 2021-23 EPS estimates to reflect strong Q4 trends, particularly in the U.S.,” Michaeli said. The analyst gave FoMoCo stock a neutral rating, but increased his Ford stock price target from $20 to $23 as the automaker continued to exhibit solid execution of its EV pivot, coupled with strong fourth-quarter trends and consumer demand in general. However, Michaeli still prefers General Motors over Ford at this time. “We continue to see greater relative upside at GM, but we maintain a constructive stance on Ford, as the long-term risk/reward proposition continues to improve,” he said.
Michaeli noted that “GM remains our top pick” while issuing a “buy” rating and raising his price target from $90 to $96. The analyst also raised his price target for Tesla stock from $236 to $262, but still gave it a “sell” rating as his price target is far below the Wall Street mean consensus of $861.41.
“If we look at the time when a handful of other companies neared Tesla’s current market cap, they did so generating ~8x more gross profit (on average) than Tesla’s current 2021 consensus and ~3x more than Tesla’s 2025 consensus,” Michaeli said.