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JPMorgan Upgrades Ford: 'Incoming Tide Of Hot New Products'

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JPMorgan Upgrades Ford: 'Incoming Tide Of Hot New Products'

A great week for Ford Motor Company (NYSE: F) got even better on Friday when the stock got a major upgrade from a big name Wall Street bank.

The Ford Analyst: JPMorgan analyst Ryan Brinkman upgraded Ford's stock from Neutral to Overweight and raised his price target from $11 to $14.

The Ford Thesis: Brinkman said Ford’s “incoming tide of hot new products,” including the Mustang Mach-E, the F-160 pickup and the Bronco, will likely drive near-term earnings upside. He said the new F-150 will have the biggest impact on Ford’s financials starting in the second quarter of 2021.

“Additional factors working in Ford’s favor are a new CEO laser focused on improving execution, a budding turnaround in China, and the recent bold move to restructure its South American operations, thereby freeing capital for more profitable growth initiatives,” Brinkman wrote in a note.

JPMorgan is calling for 2021 Ford EPS of $1.45, well ahead of Wall Street consensus estimates of just $1.02.

Related Link: How Option Traders Are Playing Ford Following $2.7B Rivian EV Truck Investment

The upgrade comes the same week Ford electric truck investment Rivian raised more than $2.7 billion at a $28 billion valuation. Ford has an undisclosed stake in Rivian after investing $500 million in the company at a much lower valuation back in April 2019. Ford has said it's spending more than $11.5 billion in EVs through 2022.

Ford shares are higher by 12% in the past week, but Brinkman sees additional upside ahead for both Ford and General Motors Company (NYSE: GM). Earlier this week, Brinkman reiterated an Outperform rating for GM and raised his price target from $49 to $63.

On Friday, Brinkman also raised his price target for Neutral-rated Ferrari NV (NYSE: RACE) from $180 to $195 and for Underweight-rated Tesla Inc (NASDAQ: TSLA) from $105 to $125.

Benzinga’s Take: EV stocks have been some of the hottest investments in the market in the past couple of years, but Ford has been mostly left out of that rally. However, if Ford investor sentiment is finally starting to turn, the stock has a long way to go to close the valuation gap with other EV stocks.

Latest Ratings for F

DateFirmActionFromTo
Feb 2021Argus ResearchUpgradesHoldBuy
Feb 2021Deutsche BankMaintainsHold
Feb 2021BenchmarkMaintainsBuy

View More Analyst Ratings for F
View the Latest Analyst Ratings

 

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