Deutsche Bank raises Ford stock price target to $9 from $7

On Tuesday, Deutsche Bank (ETR:DBKGn) analysts adjusted their outlook on Ford Motor Company (NYSE:F), increasing the price target to $9.00, up from the previous $7.00, while maintaining a Hold rating on the shares. Currently trading at $10.17, Ford’s stock sits within a broader analyst target range of $7-$17, with InvestingPro data showing 4 analysts recently revising earnings estimates upward. The revision follows Ford’s first-quarter earnings report, which highlighted strong performance, particularly from the Model E division.

Ford’s recent results have shown resilience in the face of tariffs, and the company expects a smaller impact from these trade barriers than initially anticipated. With annual revenue reaching $185 billion and maintaining a healthy 7.37% dividend yield, Ford continues to reward shareholders while navigating market challenges. Although Ford has suspended its full-year financial guidance, analysts perceive that the company is determined to gain market share. Ford plans to manage the effects of tariffs and adjust its pricing strategy in response to competition.

The company’s substantial manufacturing presence in the United States provides it with a cost advantage under the current tariff regime. Deutsche Bank’s analysts believe that Ford’s position could benefit from the U.S. administration’s industrial policy, which aims to increase domestic manufacturing.

The analysts further noted that while their forecasts for Ford have mechanically increased, it remains uncertain whether the company will flourish in the long run under these circumstances. They emphasized that Ford still has significant work to do in terms of optimizing its cost structure and launching next-generation platforms. The analysts concluded that it is too early to determine Ford’s long-term success in this evolving industrial landscape.

In other recent news, Ford Motor Company reported better-than-expected earnings for the first quarter of 2025, with earnings per share (EPS) reaching $0.14, surpassing the anticipated loss of $0.02. The company’s revenue for the quarter was $41 billion, exceeding the forecasted $38.15 billion, despite a 5% year-over-year decline. Ford’s performance was bolstered by cost improvements and strong manufacturing, particularly in the U.S. pickup segment. However, the company has suspended its full-year 2025 guidance due to uncertainties surrounding tariffs, which are estimated to have a significant impact on earnings before interest and taxes (EBIT).

In a related development, Bank of America (BofA) downgraded Ford’s credit rating to Marketweight from Overweight, citing increased pressures from tariffs. This follows Ford’s decision to suspend its full-year financial guidance for 2025, with plans to update it during the second quarter earnings call. Despite these challenges, BofA Securities maintained a Buy rating on Ford stock, noting the company’s solid first-quarter performance and reduced losses in its electric vehicle division, Model e.

Ford’s management highlighted the company’s strong position in the core truck market and its competitive advantage due to its significant U.S. manufacturing presence. They also acknowledged the potential impact of tariffs but expressed confidence in managing these challenges. The automotive giant is expected to provide further insights into its financial trajectory during its upcoming earnings call.

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