Recommendations on Ford stock
According to the recent data compiled by Reuters, 17% of 24 analysts covering Ford Motor Company (F) have given the stock “buy” recommendations. Of these analysts, 75% have recommended a “hold,” the remaining two analysts (8%) recommended a “sell.”
Upside potential and consensus target price
Ford stock’s consensus 12-month target price was $12.27 on October 26 without any upside potential, as its market price was $12.27.
Although Ford’s 3Q17 performance in North America and the Asia-Pacific market was solid, its European market performance hurt investor sentiment. Nevertheless, the company could benefit from higher US sales of trucks and sports utility vehicles going forward.
Although Ford’s profitability improved in 3Q17, its profit margins were still lower than its direct US peer (IYK) General Motors’ (GM) weak 2017. To gain investor confidence, consistency in the company’s profit margin expansion is important at the moment.
For GM stock, 42.0% of analysts recommend a “buy” with ~2.0% upside potential. In the case of Fiat Chrysler (FCAU), 40.0% of analysts recommend a “buy” with ~18.6% upside potential.