Ford Stock Rating Upgraded As Firm Thinks It’s Undervalued

Over the past couple of months, several investment firms have downgraded their outlooks and/or price targets for Ford stock, for a variety of reasons. Those include everything from uncertainties pertaining to tariffs to soaring warranty costs to ever-changing market conditions, to name just a few. However, not everyone is being bearish in terms of their outlook on the future of Ford stock – in fact, one particular investment firm is taking a bullish approach by stating that it thinks those same shares are actually undervalued at the moment.

That firm is Wolfe Research, according to Investing.com, which just adjusted its rating on Ford stock upward, from Underperform to Peer Perform. Ford stock currently has a market capitalization of $40.36 billion and is trading at a price-to-earnings ratio of 6.84, meaning that it’s slightly undervalued, and it has also outperformed the S&P 500 year-to-date – dropping five percent versus 10 percent – as well as its peers, General Motors (-17 percent) and Stellantis (-29 percent).

Wolfe Research cites Ford’s lesser exposure to tariff risk as part of its reasoning for the upgrade, especially when compared to its rivals, which rely more on production in other countries for the domestic market. However, it continues to caution that Ford stock faces a host of cyclical risks and potential pressure on shareholder returns due to cash burn as well, though analysts believe that The Blue Oval is in a stronger position than most in terms of its ability to navigate the sea of tariffs.

Ford stock actually gained in value over the course of late April, marking a big turnaround compared to some recent results. This comes on the heels of various downgrades from investment firms including Barclays, which downgraded its price target for Ford stock from $10 to $8, Bernstein, which cut its price target by $2.40 to $7, Deutsche Bank, which downgraded its price target from $9 to $7, and Bank of America, which lowered its Ford stock price target from $15.50 to $14.