Ford’s 2023 Capital Markets Day presentation was chock full of interesting news, including the automaker’s decision to team up with Tesla to provide its owners with easy Supercharger access starting next year, that its forthcoming three-row EV SUV will offer customers 350 miles of range, news that a handful of new Ford Bronco variants are on the way, and that many of its models will have “best in class” quality by 2025. All of these tidbits had a positive impact on Ford stock last week, and have also prompted Jefferies – an investment banking and capital markets firm – to upgrade its outlook as well, according to Investing.com.
Jefferies analysts upgraded Ford stock from “hold” to “buy” and increased its price target from $13 to $16 following the automaker’s Capital Markets Day presentation, showing renewed confidence in the company’s direction. According to those analysts, FoMoCo is also well-positioned to “close a deficit of execution that has dogged shares for years.”
“After too many years of management instability post Mulally (2006-14), Ford has put together a coherent team mixing internal and senior talent from outside the auto industry including CEO Jim Farley’s open mind towards new business models and inspiration from Tesla when applicable,” the analysts said.
As such, it seems as if Jefferies sees Ford stock as an attractive investment opportunity given its current price, not to mention noticed a rather wide gap between the automaker’s guidance of obtaining a 10 percent margin by 2026 and the current market consensus, which comes in at around six percent. However, this trend actually began last week, when Ford stock increased by around four percent, getting back over the $12 mark. As the automaker continues to ramp up production of its more popular models and execute its EV plans, this trend figures to follow suit.
We’ll have more on Ford stock soon, so be sure and subscribe to Ford Authority for ongoing Ford stock news and around-the-clock Ford news coverage.
No Comments yet