Ford Has Momentum Heading Into 2021, Benchmark Says In Upgrade

Ford Motor Company's F new management team and prospects of better-than-expected third-quarter earnings offer near-term catalysts for the stock, according to Benchmark.

The Ford Motor Analyst: Michael Ward upgraded Ford Motor Co. from Hold to Buy and established a $10 price target. 

The Ford Motor Takeaways: Ford Motor is likely to report third-quarter results that are ahead of expectations, backed by higher North American production, a positive mix shift and improvements in the auto credit markets, Ward said in an upgrade note. 

“In addition, demand in China has been better than expected and expansion of the Lincoln brand should be a plus for Ford,” the analyst said.

The analyst raised the third-quarter earnings estimate from 8 cents per share to 22 cents per share and the full-year 2020 estimates from a loss of 65 cents per share to a loss of 25 cents per share. He also raised the 2021 earnings estimate from 65 cents per share to $1.15 per share.

“Momentum from new products and the need to replenish depleted inventories of full-sized pickup trucks should accelerate the momentum into 2021,” Ward said. 

“The management changes along with new product momentum and the benefits of cost improvement actions, in our opinion, are positive variables for the stock.”  

F Price Action: Ford shares were climbing 6.21% to $7.70 at last check Monday.

Photo by Dave Parker via Wikimedia.