Market Overview

Goldman Sachs Upgrades Ford To Buy, Restructuring Plan Yields Favorable Opportunities

Goldman Sachs Upgrades Ford To Buy, Restructuring Plan Yields Favorable Opportunities

With all eyes on the autonomy programs of General Motors Company (NYSE: GM) and Tesla Inc (NASDAQ: TSLA), Ford Motor Company (NYSE: F) often seems the auto industry’s forgotten child. One investor thinks it's time to show a little appreciation.

The Rating

Goldman Sachs analyst David Tamberrino upgraded Ford to Buy and raised his price target from $9 to $12.

The Thesis

The analyst anticipates positive reception of any incremental announcements around Ford, particularly as Street sentiment continues to favor GM.

Additionally, he forecasts product launches in lagging key markets to catalyze positive earnings inflections in North America and China beyond 2019, with 12-percent of the firm’s $2.5 billion of initiatives driving bottom-line growth.

“While we still expect a downward earnings trajectory into 2019 (North America profit under-pressure), we believe next year will represent trough earnings and the combination of a refreshed product cadence globally as well as cost improvements from strategic initiatives will begin to take hold,” Tamberrino wrote in a note. “We believe Ford can put itself on a pathway to earnings that are above normalized EPS by 2021.”

Goldman Sachs maintains expectations for a regular dividend and sees Ford’s $7 billion, five-year cash restructuring plan driving $2 billion to $3 billion in free-cash-flow and earnings-before-interest-and-tax improvements.

Price Action

At time of publication, shares were trading up 5.8 percent to $9.50.

Related Links:

Ford's Stock Has Best Day In 7 Years After Delivering Results Where It 'Matters Most'

7 Reasons Morgan Stanley Pulled Back On Ford

Latest Ratings for F

Nov 2020Morgan StanleyDowngradesOverweightEqual-Weight
Nov 2020UBSMaintainsNeutral
Nov 2020JefferiesMaintainsBuy

View More Analyst Ratings for F
View the Latest Analyst Ratings


Related Articles (F)

View Comments and Join the Discussion!

Posted-In: David Tamberrino Goldman SachsAnalyst Color Upgrades Price Target Top Stories Analyst Ratings Best of Benzinga

Latest Ratings

HYMCBMO CapitalInitiates Coverage On
DEMorgan StanleyMaintains335.0
SBNYRaymond JamesMaintains138.0
CORTHC Wainwright & Co.Maintains32.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at