Deutsche Bank Gives Update On Ford

Deutsche Bank is maintaining its Buy rating and its $19 price target on Ford Motor Co.

after the company' presented at Deutsche Bank's Industrials Conference. Says Deutsche Bank, in the report “…management also provided some commentary on the near term outlook, suggesting that Q2 earnings will be equal to or very slightly below Q1. We believe that this comment was aimed at reigning in a few of the higher estimates on the Street (consensus is $0.64 for Q2, slightly above the $0.62 achieved in Q1), and that Ford did not intend to flag any negative turn of events. Ford's Q2 guidance is in fact consistent with commentary provided during the company's Q1 call (i.e. at the time mgmt. Suggested that Q1 likely represented the high point for the year). In addition, management reiterated that they continue to see the U.S. market on an upward trajectory (like most companies in the industry, management expects a 2H snap back, possible to above trend levels given that a large number of sales being deferred from this summer). Management also reiterated that they see earnings and cash flow growth this year and beyond (Automotive margins are targeted to rise to the 8%-9% range by mid-decade, versus 6% in 2010).” F closed at $13.15 yesterday.