Bank of America Maintains Buy, PO of $22 on Ford
Bank of America reiterates its Buy rating and price objective of $22 a share on Ford (NYSE: F) as the company's fourth quarter got hit by commodity hedging.
Bank of America notes, "Ford reported 4Q11 EPS from ops of $0.20, below our estimate of $0.29 and consensus of $0.25. The downside is largely due to higher YoY commodity/ hedging costs of about $0.11/share. GAAP 4Q:11 EPS of $3.40 included a small gain on the creation of the Ford Sollers JV and the large non-cash reversal of most of its tax valuation allowance of $12.4bn, which is a sign of Ford's past and likely future profitability. The bright spot in the 4Q was stronger-than-expected cash flow that drove net cash up to a high $9.8bn, which should support future dividend increases."
F closed at $12.79 a share on Friday.
