JPMorgan maintains Ford stock Overweight rating, $12 target

Regarding the offsets to the tariff-related costs, which are expected to be around $1.0 billion against the $2.5 billion of tariff costs, Brinkman mentioned that the largest portion was anticipated to come from optimizing market equations, leveraging pricing and share gain opportunities as competitors pass on their higher tariff costs. While Ford has not provided detailed contributions of price or share gain to its targeted tariff offset due to competitive reasons, Brinkman considered the overall tariff headwind and the projected offsets to be conservative, especially in comparison to General Motors (NYSE:GM)’ pricing improvements included in their outlook. With annual revenue of $185 billion and EBITDA of $11.1 billion, Ford maintains significant operational scale to manage these challenges. For deeper insights into Ford’s financial metrics and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro. With annual revenue of $185 billion and EBITDA of $11.1 billion, Ford maintains significant operational scale to manage these challenges. For deeper insights into Ford’s financial metrics and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro. Regarding the offsets to the tariff-related costs, which are expected to be around $1.0 billion against the $2.5 billion of tariff costs, Brinkman mentioned that the largest portion was anticipated to come from optimizing market equations, leveraging pricing and share gain opportunities as competitors pass on their higher tariff costs. While Ford has not provided detailed contributions of price or share gain to its targeted tariff offset due to competitive reasons, Brinkman considered the overall tariff headwind and the projected offsets to be conservative, especially in comparison to General Motors’ pricing improvements included in their outlook. With annual revenue of $185 billion and EBITDA of $11.1 billion, Ford maintains significant operational scale to manage these challenges. For deeper insights into Ford’s financial metrics and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro.

Brinkman noted that these developments, combined with Ford’s advantageous position regarding tariff costs compared to its competitors, may offer opportunities for pricing strategies and market share gains. The analyst updated the full-year 2025 EBIT forecast for Ford to $6.2 billion, up from the previous $5.8 billion estimate. The projection for 2026 saw a minor increase to $8.2 billion from $8.1 billion.

The analysis by JPMorgan also touched on the expected tariff costs and potential offsets. Ford anticipates a gross EBIT headwind from tariffs for the full year of 2025 at approximately $2.5 billion, which is favorable when compared to General Motors’ estimated impact of $4.0-$5.0 billion. Brinkman pointed out that Ford’s figure includes various tariffs beyond the automotive sector, such as those on steel and aluminum, and the impact of these on U.S. market prices, as well as retaliatory tariffs from China.

Regarding the offsets to the tariff-related costs, which are expected to be around $1.0 billion against the $2.5 billion of tariff costs, Brinkman mentioned that the largest portion was anticipated to come from optimizing market equations, leveraging pricing and share gain opportunities as competitors pass on their higher tariff costs. While Ford has not provided detailed contributions of price or share gain to its targeted tariff offset due to competitive reasons, Brinkman considered the overall tariff headwind and the projected offsets to be conservative, especially in comparison to General Motors’ pricing improvements included in their outlook.

In other recent news, Ford Motor Company (NYSE:F) reported a significant earnings beat for the first quarter of 2025, with earnings per share reaching $0.14, surpassing the projected loss of $0.02. The company generated $41 billion in revenue, exceeding the anticipated $38.15 billion, despite a 5% year-over-year decline. Following this strong performance, Deutsche Bank (ETR:DBKGn) adjusted its outlook on Ford, raising the stock price target to $9.00 from $7.00, while maintaining a Hold rating. BofA Securities maintained a Buy rating with a $14.00 price target, noting reduced losses in Ford’s electric vehicle division, Model e, as a positive development.

However, Bank of America downgraded Ford’s credit rating to Marketweight from Overweight, citing increased pressures from tariff costs. The company has suspended its full-year 2025 financial guidance due to uncertainties surrounding tariffs, which are estimated to have a gross impact of $2.5 billion on EBIT. Ford plans to update this guidance during its second-quarter earnings call. Analysts from BofA Securities highlighted Ford’s strong position in the core truck market, despite challenges posed by market volatility.

Ford’s substantial manufacturing presence in the U.S. is seen as a competitive advantage, potentially allowing the automaker to increase its market share. Despite the challenges, Ford’s management remains committed to cost reductions and innovation to navigate the current industrial landscape. The company’s efforts to adapt to changes in the automotive industry and its focus on its core truck market align with the positive outlook from some analysts.

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