Deutsche Bank Has Buy On Ford (F)

Deutsche Bank has a Buy rating and a $19.50 price target on shares of Ford F. In a note to clients, Deutsche Bank writes, "Ford has been distinguishing itself on a number of measures this month, including strong market share (back to the mid- to high 16% range) and pricing performance (Ford's avg. transaction prices are up by more than $500 yoy this month despite the negative mix shift towards small cars). Lower incentives appear to be driving this pricing improvement. And we believe that there's a strong possibility that incentives/pricing could continue to improve going forward. Separately, we now expect that a number of U.S. automakers may begin to share their assessments of the impact of Japanese supplier disruptions early next week. Overall, we believe that these disclosures could be favorable (compared to the Street's worst case fears). At the very least, these disclosures could be positive in that they eliminate the current uncertainty. In addition, we now believe that Ford may be in a position to distinguish itself favorably in terms of relative impact. We have noted, for example, that Ford is not dependent on the damaged Renesas Naka plant for its Engine and Transmission MCU's. It appears that Ford's overall exposure to Naka is isolated to certain radios and navigation units, and that there are fairly easy work-arounds for those types of parts. The one significant negative that we have identified recently is that there appears to have been a sharp decline in pickup truck demand in the U.S. market." Shares of F are up 13 cents in pre-market trading to $14.44, a gain of 0.9%.