Ford’s first-quarter results
Ford Motor Company (F), the second-largest US automaker (XLY), has been largely trading on a bullish note since it released its first-quarter earnings results last week on April 25 after the market closed. The stock surged 7.4% on April 26, marking its biggest single-day gain since April 2009.
After Ford’s first-quarter earnings event, some notable Wall Street analysts raised their target prices on its stock.
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Jefferies raised its target price
According to Thomson Reuters, analysts at Jefferies raised their 12-month target price on Ford stock to $12.50 from $11.00, reflecting a potential upside of ~21.1% from its April 29 closing price of $10.32.
In May 2018, Jefferies analyst Philippe Houchois upgraded his rating on Ford stock to a “buy” from a “hold.” Back then, the analyst said, “Despite being perceived a laggard, we think Ford is early among global OEMs [original equipment manufacturer] in re-evaluating how it allocates capital, a process most OEMs outside NA have yet to address.” He added, “Ford is one of few OEMs with a ‘fortress’ balance sheet, even if we assume some restructuring/exit costs.”
UBS and Craig-Hallum on Ford
Jefferies’ target price raise on Ford stock came a few days after both UBS and Craig-Hallum raised their target prices on its stock last week. UBS gave Ford stock a new target price of $11, while Craig-Hallum gave it a target price of $10.
These multiple target price upgrades could be driving optimism in Ford stock today. At 11:25 AM EDT, Ford stock was trading with a 0.6% gain despite the 0.6% fall in the S&P 500 benchmark on the day.