These Analysts Aren't Concerned About Ford

• Ford Motor Company F shares have appreciated 12.09 percent over the past month, reaching a high of $15.69 on October 26.
• Joseph C. Amaturo of Buckingham Research has maintained a Buy rating and price target of $18 on the company.
• Automotive News reported that Ford Motor is about to launch one of its biggest sales since the recession, titled the “Friends & Neighbors Pricing Event.”

Analyst Joseph Amaturo believes that investor concerns regarding this sale are overdone, especially against the backdrop of the strong 3Q15 results, “which demonstrated record quarterly profit in North America and very strong automotive related operating cash flow of $2.8B.”

Related Link: Ford Has Rising Costs And Few Catalysts, Warns Credit Suisse

On the other hand, the company’s market share in the US has been relatively flat year-to-date, partly driven by the F-150 changeover. Amaturo sees the current marketing initiative as a desire by management to regain market share, especially at a time when other OEMs might need to offer heavy discounts on their vehicles due to outstanding issues.

Amaturo also believes that this program would not be “materially more expensive than select current offerings, nor will it represent a material change/reduction in net pricing or ATPs.”

The “Friends & Neighbors Pricing Event” initiative will run from November 3 to January 4 and will offer discounts of up to 10 percent on the retail prices, in combination with other incentives that are already being offered.