Jon Najarian Says These Are 'Good Reasons To Stick With Ford'

Morgan Stanley analyst Adam Jonas admitted he was wrong when he downgraded Ford Motor Co F earlier in the year, but he reaffirmed his Underweight rating and $12 price target last week.

Jonas explained that he "greatly underestimated" Ford's leadership, strategy, product and communication. However, he remains concerned legacy automakers like Ford face the prospect of being lower-margin companies than they are today because he expects people to steer clear of internal combustion engine vehicles faster than legacy automakers can scale EV profitability.

Why It Matters: With the Ford F-150 Lightning's beginning to roll out, "I don't know how you Underweight them," Market Rebellion co-founder Jon Najarian said Tuesday on CNBC's "Fast Money Halftime Report."

This is the time where investors should be looking to ride the wave of EV momentum, according to Najarian.

See Also: Ford Is Doing Whatever It Takes To Overthrown Tesla

He acknowledged Ford and other legacy automakers will face headwinds as they transition to EVs, but Najarian says an exciting product can go a long way for a company like Ford.

"That doesn't mean that they can't just really get an exciting product out there that everybody wants. You know, whether it's the Bronco or the Lightning, I think both of those are good reasons to stick with Ford."

F Price Action: Ford has traded as high as $20.79 and as low as $8.43 over a 52-week period.

The stock was down 2.14% at $19.25 at publication time.
Photo: courtesy of Ford.