Citi Reiterates Buy On Ford

Citi Investment Research is reiterating its Buy rating and $18 price target on shares of Ford F. In a note to clients, Citi writes, "Ford is hosting an investor day on June 7 in New York. We believe management may provide additional medium-term parameters around key metrics. While we don't view out-year consensus estimates as conservative, a reassuring margin outlook should be sufficient to revive sentiment in the shares at the currently low 4.0x 2011E EBITDAP multiple (~10% FCF yield) and amidst industry pricing strength. The upcoming UAW negotiation will also be a focal point, with the focus on whether Ford is able to narrow the remaining modest cost gap with domestic competitors (even at an upfront cost)." Shares of F closed at $14.66 yesterday, a loss of 14 cents.