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JP Morgan analysts upgraded their rating on Ford Motor Co. shares to their pending purchase equivalent on Friday, saying a “rising tide of hot new products” is likely to bring “substantial” benefits in terms of volume, mix and price.
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Stocks lost strength on Friday, but recoveries from previous sessions pushed their weekly gains to around 15%, which compares to gains of around 2% for the S&P 500 Index. SPX,
New cars on Ford’s slate include an electric Mustang Mach-E crossover and the highly anticipated Bronco SUV, for which Ford has racked up more than 190,000 reservations, analysts at JP Morgan, led by Ryan Brinkman, said.
“The most important from a financial standpoint, however, will be the all-new F-150, which while slowing the 4Q / 1Q in the midst of switching to a new version, we expect it to become a strong contributor to profits when assembly lines return to full force. speed by 2Q21, ”they said.
Analysts also praised Ford’s new CEO for his “laser focus on improving execution,” a “nascent turnaround” in China and the company’s recent decision to restructure its South American operations, which analysts called it a “bold move”.
Analysts expect Ford’s fourth-quarter loss to hit 4 cents per share, versus a FactSet consensus for a quarterly loss of around 7 cents per share. They increased their price target to $ 14 from $ 11, which implies a hike of about 27% from Friday prices.
“Now is a good time to buy Ford stock, given the new products trending in the Ford New Product segments and the F-150 refresh,” they said.
Ford shares have gained 25% in the past 12 months, compared to gains of around 16% for the S&P in the same period.
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