Ford: stock rises after an upgrade
(CercleFinance.com) - Ford shares are up 2% on the New York Stock Exchange on Friday after Barclays upgraded them.
The British broker, which upgraded its recommendation from "equal weight" to "overweight", believes that the market consensus underestimates the extent of the shift that Ford intends to make towards electric vehicles by 2025-2030.
"While we have liked Ford's product cycle and profit improvement potential under an energetic new CEO, the lack of a clear, aggressive BEV strategy kept us on the sidelines," it says.
"After a deep-dive into Ford Europe and in particular its VW alliance, we are more comfortable with the margin improvement outlook," the broker adds, which has significantly raised its target price for the share from 9 dollars to 16 dollars.
The broker's comments are clearly overriding the group's aforementioned supply issues.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The British broker, which upgraded its recommendation from "equal weight" to "overweight", believes that the market consensus underestimates the extent of the shift that Ford intends to make towards electric vehicles by 2025-2030.
"While we have liked Ford's product cycle and profit improvement potential under an energetic new CEO, the lack of a clear, aggressive BEV strategy kept us on the sidelines," it says.
"After a deep-dive into Ford Europe and in particular its VW alliance, we are more comfortable with the margin improvement outlook," the broker adds, which has significantly raised its target price for the share from 9 dollars to 16 dollars.
The broker's comments are clearly overriding the group's aforementioned supply issues.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.