Recommendations on Ford stock
According to the latest data compiled by Reuters, 75% of analysts covering Ford Motor (F) stock have given it a “hold” recommendation. Another 17% of Wall Street analysts gave the stock “buy” recommendations, while the remaining 8%, or two out of a total 24 analysts, gave it a “sell” recommendation.
Upside potential and price targets
As of October 18, 2017, Ford’s consensus 12-month target price was $11.91 with an upside potential of ~2.3% from its market price of $12.19. In the last three months, many analysts have changed their rating on Ford stock from “buy” to “hold.” Analysts’ consensus price target for the stock was $12.75 about three months ago, which has fallen to $12.19 in October.
Weak US auto sales in the first three quarters of 2017 have raised concerns about the future of the US auto demand. Continued weak US sales could affect Ford’s business, which could be one of the key reasons why only 17% of analysts favor a “buy” on the company.
Also, Ford hasn’t been able to expand its strong presence in the Chinese market the way General Motors (GM) has. If popular Wall Street analysts change their views, a significant short-term movement in the stock price could occur. Therefore, it is important for investors to pay attention to these analysts’ recommendations.
Analysts on Ford’s peers
Analysts’ recommendations and 12-month return potential for Ford’s peers (FXD) as of October 18 are as follows:
- General Motors (GM): 46% of analysts gave it a “buy,” but its market price is already higher than its consensus target price.
- Fiat Chrysler Automobiles (FCAU): 44% of analysts suggested a “buy” with about 17.1% upside potential for the next 12 months.
- Tesla (TSLA): 35% of analysts gave it a “buy.” However, its stock price is also trading well above its consensus target price of $321.89.
Read on to the next article to find out what analysts are estimating for Ford’s 3Q17 revenues.