Market Overview

Morgan Stanley: Ford's Beat Should Help Improve Access To Capital

Share:
Morgan Stanley: Ford's Beat Should Help Improve Access To Capital

Ford Motor Company (NYSE: F) far exceeded first-quarter expectations. Its 44-cent bottom line beat a 26-cent estimate, with $37.24 billion in automotive revenue surging past a $37.08 billion forecast.

The automaker earned praise from even the most cautious analysts.

The Rating

Morgan Stanley’s Adam Jonas and Armintas Sinkevicius maintained an Equal-Weight rating on the stock with a $10 price target.

The Thesis

The analysts consider the bottom-line beat impressive given that every region contributed, revenue barely changed, and hundreds of millions of dollars had been dumped into Mobility.

“Ford delivered an extremely strong set of results in what may prove to be the most difficult quarter of the global auto industry,” Jonas and Sinkevicius wrote in a note. “[...] More importantly to Ford stakeholders, the results should help calm concerns in the fixed income upon which so much of the House of Dearborn is fueled by.”

They suspect the strong performance to inspire more stable investments and improve Ford’s access to financing.

“We believe a recent slate of restructuring announcements and strategic actions, combined with the strong 1Q19, helps provide reassurance to providers of capital,” they wrote.

Considering the beat, Morgan Stanley raised its 2019 earnings-per-share estimate 22 percent to $1.16.

Price Action

At time of publication, Ford shares traded up 6.1 percent at a rate of $10.01.

Related Links:

Google's Waymo To Build Autonomous Vehicles In Detroit

Ford Beats GM To Invest $500M In Rivian, Enter Strategic Partnership On EVs

Ford CEO Jim Hackett, right, with Executive Chairman William Ford Jr. in Detroit. Photo by Dustin Blitchok.

Latest Ratings for F

DateFirmActionFromTo
Mar 2020Morgan StanleyMaintainsOverweight
Mar 2020CitigroupMaintainsNeutral
Mar 2020UBSDowngradesBuyNeutral

View More Analyst Ratings for F
View the Latest Analyst Ratings

 

Related Articles (F)

View Comments and Join the Discussion!

Posted-In: Adam Jonas Armintas Sinkevicius Morgan StanleyAnalyst Color Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
RIGRF LaffertyMaintains5.0
NOVRF LaffertyMaintains13.0
WSCDA DavidsonMaintains19.0
ITTDA DavidsonReiterates70.0
NOWGoldman SachsMaintains376.0
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.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
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 vipaccounts@benzinga.com