Ford stock price target raised to $11 from $10 at RBC Capital

Investing.com - RBC Capital has raised its price target on Ford (NYSE:F) to $11.00 from $10.00 while maintaining a Sector Perform rating on the stock. Currently trading at $10.97, Ford has shown strong momentum with a 16.35% return over the past year. According to InvestingPro analysis, the stock appears fairly valued based on its comprehensive Fair Value model.

The price target increase follows Ford’s second-quarter earnings results, which exceeded expectations primarily due to strong performance in the company’s Pro segment. As a prominent player in the Automobiles industry with $185.25 billion in revenue over the last twelve months, Ford maintains a solid market position while offering investors a notable 6.93% dividend yield.

RBC Capital noted that Ford’s guidance for 2025 was "impressive" and suggested the automaker could become a more compelling investment story in 2026 if the Pro segment continues to outperform expectations and management can reduce losses in its electric vehicle division.

The firm also highlighted Ford’s potential advantage in trade policy, stating the company could be "best positioned" if the United States-Mexico-Canada Agreement (USMCA) is renegotiated with more favorable tariff rates compared to deals the U.S. has established with the European Union, Japan, and South Korea.

Despite the higher price target, RBC Capital maintained its Sector Perform rating on Ford stock, indicating a neutral stance on the company’s near-term prospects.

In other recent news, Ford Motor Company reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share of $0.37 against the forecasted $0.31. The company also achieved a revenue of $50.18 billion, exceeding the anticipated $45.29 billion. Additionally, Ford is recalling 312,120 vehicles in the United States due to a potential brake system defect, as reported by the National Highway Traffic Safety Administration. This recall addresses an unexpected loss of power brake assist that could increase the risk of crashes. In another development, the British government is providing a £1 billion export development guarantee to Ford’s UK arm. This guarantee, announced by UK Export Finance, aims to support Ford’s global growth objectives. These recent developments highlight Ford’s financial performance and strategic initiatives.

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