UBS: Ford Ready To Break Out

In a report published Wednesday, UBS analyst Colin Langan maintained a Buy rating on Ford Motor Company F, with a price target of $19, with the F-150 launch phase nearing an end. Analyst Colin Langan believes that the F-150 launch phase ending offer an "opportune time" for investors to "take another look" at the company. "Improved F-150 availability combined with the Edge & Explorer launches, an EU & AP recovery, and continued gains in China should drive strong H2 share & profits." At its recent Let's Chat event, Ford said that its 2nd F-150 plant was at full production, which would boost availability. "More importantly, recent data supports our view of strong F-150 pricing," Langan stated. Ford's shares have underperformed the market in the last year, declining 13 percent versus a 9 percent rise in S&P. Given the expectation of a strong 2H, Langan believes that "now is a particularly attractive time to buy" Ford's shares. "Globally, Ford EU should benefit from the market recovery & Genk savings while Ford Asia Pac should benefit as its 2nd plant in India ramps and ASEAN sales modestly recover in H2. We expect continued gains in China as the new Edge & Taurus hit the market," the report added.