Ford stock price target raised to $9 from $8 at Jefferies

Investing.com - Jefferies raised its price target on Ford (NYSE:F) to $9.00 from $8.00 on Monday, while maintaining an Underperform rating on the automaker’s stock. Currently trading at $11.32, Ford has seen a notable 29% price increase over the past six months. According to InvestingPro analysis, the stock appears to be trading near its Fair Value.

The research firm noted that Ford’s guided full-year net tariff of $2 billion is comparable to competitors Stellantis (NYSE:STLA) ($1.7 billion) and General Motors (NYSE:GM) ($2-3 billion excluding Korea), when adjusted for size. Ford’s higher exposure to aluminum, which faces a 50% tariff, offsets its higher U.S. final assembly operations. InvestingPro data shows Ford’s gross profit margin stands at 7.2%, reflecting these cost pressures.

Jefferies expects Ford to significantly reduce losses in its electric vehicle division (Model e) from 2026 onward. The firm cited several factors for this outlook, including lower unit losses in Europe, fewer U.S. sales, peak Generation 2 investment, and more competitive models.

The analysts raised their 2025 adjusted EBIT estimate by 2% to $6.9 billion, with Ford Credit compensating for weaker Ford Pro performance. They also increased their free cash flow projection by 12% to $2.7 billion, though this remains below Ford’s guidance.

Ford is scheduled to update investors on its electric vehicle strategy on August 11 and provide information on regulations on August 14, according to Jefferies. The company maintains a 6.6% dividend yield and has sustained dividend payments for 14 consecutive years. Discover more insights and 12 additional ProTips with InvestingPro’s comprehensive research report.

In other recent news, Ford Motor Company reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share of $0.37, compared to the forecasted $0.31. The company also achieved revenue of $50.18 billion, exceeding the anticipated $45.29 billion. Additionally, Ford is recalling over 312,000 vehicles in the United States due to a potential brake system defect that could lead to an unexpected loss of power brake assist, raising the risk of crashes. In another development, the National Highway Traffic Safety Administration has launched a preliminary evaluation into approximately 35,950 Ford vehicles over potential B-pillar trim detachment issues.

Moreover, RBC Capital has raised its price target for Ford to $11.00 from $10.00, maintaining a Sector Perform rating, following the company’s strong second-quarter results, particularly in its Pro segment. The British government is also supporting Ford’s global growth with a £1 billion export development guarantee through UK Export Finance. These recent developments highlight a mix of strong financial performance and ongoing regulatory and safety challenges for the automaker.

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