Ford Motor Company (NYSE: F) experienced a significant boost in its stock value on Tuesday morning, driven by the continuous stream of positive reviews from Wall Street following the company’s capital markets day more than a week ago.
Philippe Houchois, an equity analyst at Jefferies, upgraded Ford stock from Hold to Buy and raised the price target from $13 to $16. In a note to clients, Houchois expressed confidence in Ford’s plan and team, stating that they are now positioned to overcome execution challenges that have plagued the company’s shares for years.
Since hosting its capital markets day on May 22, Ford’s stock has witnessed a rally. During the event, the company unveiled its new structure, which separates electric vehicles from the traditional gas-powered business, garnering positive attention from the market.
In addition, Ford also made headlines with its partnership announcement with Tesla. The collaboration allows Ford owners to access over 12,000 Tesla Superchargers across the United States and Canada.
Houchois noted that Ford’s strategy, with a focus on its strengths and a new business structure consisting of Ford Blue (traditional autos), Ford Model e (electric vehicles), and Ford Pro (commercial vehicles), resonates with investors.
Houchois and Jefferies foresee Ford’s Model e unit achieving profitability by 2025, while the launch of “Gen 2” vehicles may further drive sustainable profitability to 2026.
Jefferies argues that Ford’s decision to focus on targeted vehicle models, rather than creating EVs in every size category as it did with traditional units, will work in the company’s favor.
Ford CEO Jim Farley revealed that the second generation of Ford’s EVs will include a new Lightning pickup and three-row crossovers, highlighting the company’s intention to prioritize quality and specialization.
One of the crucial aspects of Ford’s EV push, and the overall electrification movement, is the ease of vehicle charging for customers. Wall Street analysts view Ford’s recent deal with Tesla as a positive step forward in this regard.
Goldman Sachs analyst Mark Delaney stated that the partnership improves the user experience for Ford’s EV owners and reinforces the importance of achieving profitability through increased EV sales. Ford’s strategy to prioritize quick charging and smaller batteries aligns with its goal of enhancing user experience and profitability, as discussed during the recent investor day.
Overall, Ford’s stock has surged nearly 10% over the past five trading sessions as confidence in the company’s turnaround resonates across Wall Street. The positive reviews, upgrades, and strategic developments position Ford favorably in the automotive market.
Zabih Ullah is a seasoned finance writer with more than ten years of experience. He is highly skilled at analyzing market trends, decoding economic data, and providing insightful commentary on various financial topics. Driven by his curiosity, Zabih stays updated with the latest developments in the finance industry, ensuring that his readers receive timely and relevant news and analysis.
