Word on the Street: Analysts’ Recommendations on Ford

According to the latest Bloomberg consensus, 35% of analysts covering Ford (F) have given the company “buy” recommendations, while 60% of analysts maintain neutral views and have recommended “holds.” Only one analyst among the 20 covering the company’s stock has recommended a “sell.”

If popular Wall Street analysts change their views, significant short-term movement in the stock’s price could occur. Therefore, it’s important for investors to pay attention to these analysts’ recommendations on Ford.

Continued stronger US sales of SUVs and trucks compared to small cars could be a reason why ~35% of analysts are maintaining bullish views on Ford. Notably, heavy vehicles such as SUVs and trucks typically have higher margins than small cars.

As of July 13, 2016, Ford’s consensus 12-month target price was $14.67, with an upside potential of ~9% from its market price of $13.48.

Among notable analysts, Colin Langan of UBS has the highest price target of $20 for the company, which represents an outstanding ~48% upside potential. Likewise, Ryan Brinkman of JPMorgan Chase also recommends a “buy” with a price target of $18 and a return potential of ~33%.

Adam Jonas of Morgan Stanley maintains a negative view on the company’s stock, expecting it to underperform the broader market. He maintains a low target price of $12 for Ford, representing a negative return of about 11%.

Analysts’ estimates for the 12-month return potential of Ford’s peers (FXD) as of July 13, 2016, are as follows:

• General Motors (GM): 47.6% of analysts gave it “buys” with ~22% upside potential.
• Fiat Chrysler Automobiles (FCAU): 48.3% of analysts gave it “buys” with ~52% upside potential.
• Tesla Motors (TSLA): 27.8% of analysts gave it “buys” with ~16% upside potential.
• Ferrari (RACE): 56.3% of analysts gave it “buys” with ~18% upside potential.

Continue to the next article to find out what analysts are estimating for Ford’s 2Q16 revenue.