Bank Of America Maintains Buy Rating On Ford Stock Over EV Pivot

In recent weeks, a number of Wall Street investment firms have opted to downgrade their outlook on Ford stock, which isn’t terribly surprising given uncertainties in the current economic environment and automotive industry, as a whole. Aside from things like tariffs, automakers are dealing with uncertainties pertaining to future demand for electric vehicles, and in Ford’s case, things like soaring warranty costs. However, Bank of America has opted to maintain its positive outlook on Ford stock, at least, for now.

According to Insider Monkey, BofA Securities has reiterated its “buy” rating on Ford stock, and set a price target of $14 on those same shares after the automaker unveiled its new universal EV platform recently, and announced its pivot to more affordable electric vehicles at the same time. Analysts noted that Ford is taking cues from the leaders in EV manufacturing as it pertains to becoming more cost competitive via that process, setting it up for success in the future when demand is expected to pick up.

This past April, BofA lowered its price target for Ford stock from $15.50 to $14, but maintained its buy rating on the automaker’s shares at the same time. Its main concerns at that time were centered around tariffs that had just been imposed on imported vehicles and parts that same month. Those concerns have thus far not impacted Ford’s bottom line in a major way, but it’s unclear if that will continue to be the case moving forward.

Regardless, while BofA remains a bit optimistic, there are other firms being a bit more bearish when it comes to their outlook on Ford stock. They include Dbs Bank, which recently downgraded Ford stock from “hold” to a “moderate sell” rating, as well as Bernstein, which opted to hold its ground in terms of its opinion on Ford stock, maintaining a price target of $8.30, along with an Underperform rating.