Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Ford (NYSE:F), a prominent player in the global automobile industry with a market capitalization of $44.34 billion, received a reiterated Buy rating and $14.00 price target from BofA Securities following the automaker’s " Next (LON:NXT) Model T Moment" event. According to InvestingPro, analyst price targets for Ford currently range from $8 to $16.
Ford unveiled its Universal Vehicle Platform during the event, highlighting improvements the new architecture will bring to electric vehicle manufacturing. The company announced a $2 billion investment in its Louisville, Kentucky facility to begin manufacturing vehicles based on this platform.
BofA Securities views these developments as promising, noting that Ford appears to be learning from EV manufacturing leaders to create a competitive value proposition. The firm believes Ford is positioning itself for the future of electrification despite the current slowdown in U.S. electric vehicle sales.
The research firm pointed out that competitors like Tesla (NASDAQ:TSLA) and Slate are preparing to offer affordable EVs to the U.S. market, and Ford is working to remain competitive. BofA also emphasized Ford’s global footprint, which necessitates a competitive EV lineup as international markets continue moving toward electrification.
BofA Securities concluded that the event was positive for Ford’s competitiveness both domestically and internationally, supporting its Buy rating on the stock.
In other recent news, Ford Motor Company has announced a substantial investment of approximately $5 billion to enhance its electric vehicle production capabilities. This investment will be directed toward the Louisville Assembly Plant and BlueOval Battery Park Michigan, creating or securing nearly 4,000 jobs. The initiative includes transforming the Louisville Assembly Plant with a $2 billion investment to produce a midsize electric pickup truck, expected to reach customers in 2027. Additionally, Ford is recalling over 103,000 vehicles in the United States due to issues with axle hub splines that could lead to a rollaway risk or loss of drive power. The National Highway Traffic Safety Administration (NHTSA) has also opened a preliminary evaluation into about 35,950 Ford vehicles concerning potential B-pillar trim detachment issues. On the financial side, Jefferies has raised Ford’s stock price target to $9 from $8, maintaining an Underperform rating, while RBC Capital increased its target to $11 from $10, citing strong second-quarter earnings. These developments reflect Ford’s ongoing efforts to address safety concerns and expand its electric vehicle footprint amidst analyst evaluations.
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