Why This Ford Analyst Is Downgrading Blue Oval Stock – Ford Motor Credit Company (F)

Ford Motor Firm (NYSE:F) shares have been on a tear and the corporate’s inventory just lately hit the $100-billion market capitalization mark.

The Ford Analyst: RBC Capital Markets analyst Joseph Spak downgraded Ford from Outperform to Market Carry out and elevated the worth goal from $21 to $26.

The Ford Thesis: Ford’s turnaround is properly underway and the automaker can successfully transition towards a EV/AV/software program world, Spak mentioned in a Friday downgrade word.

Ford obtained the Mach-E to market rapidly, it has seen robust demand and Dearborn is now tripling capability for the product, the analyst mentioned. The corporate is more likely to get its F-150 Lightning to market forward of competitions, which alone is a strong feat, he mentioned. 

The heavy reliance on the present F-150 platform versus rivals that took a group-up strategy, nevertheless, is a good pushback, Spak mentioned. It now seems that the corporate could not have a technical drawback and obtained to market faster, the analyst mentioned.

Total, Ford is now concentrating on 600,000 BEV capability in 2023, he mentioned.

“We nonetheless aren’t certain they will produce to that degree in 2023 given ramps, but it surely’s considerably greater than anticipated just a few years in the past,” Spak mentioned. 

Associated Hyperlink: Ford Cannot Compete With Tesla Regardless of Doubling F-150 Lightning Manufacturing: Analyst

The corporate has additionally made main investments in BEV and battery capability on high of bettering fundamentals from restructuring, constructive earnings revisions and “unlocking” worth from beneath company Ford by means of the funding in Rivian Automotive, Inc. (NASDAQ:RIVN) and doubtlessly from its stake in Argo, the analyst mentioned. 

Ford has re-rated and there could possibly be some additional potential for the corporate to re-rate, because it continues to show its transition, he mentioned. 

That would take time, Spak mentioned.

“Backside-line, is we consider Ford inventory worth could consolidate for some time, so buyers could select to allocate capital to different auto names within the interim.”

With the near-term upside trying a bit of tougher, RBC mentioned it’s  shifting to the sidelines.

F Value Motion: Finally test, Ford shares have been down 1.12% at $24.74. 

Picture courtesy of Ford. 


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