Ford Motor (F) – Get report Shares appear poised to open at their highest level in more than six years on Friday following a rise in JPMorgan’s price target as the automaker advances its EV investment plans.
JPMorgan analyst Ryan Brinkman raised his $ 2 price target for Ford to $ 18 a share, the highest on Wall Street, while keeping his ‘overweight’ rating in place, citing an improved price mix, stable labor costs and global flexibility. semiconductor supplies shortage.
Last week, Ford said it will increase investment in electric vehicles to at least $ 30 billion by 2025, and promised to have 40% of its fleet fully electric in the next decade. Ford also said it would deliver an adjusted 8% profit margin, a long-standing goal for the automaker, by 2023.
Its biggest rival, General Motors GM, said yesterday that it expects its first-half earnings to be “significantly better” than previous forecasts as semiconductor shipments improve and plants across the country return to full capacity.
“Ford may not see the same degree of improvement in semiconductor availability in the second quarter as GM, but we think it may see something, even after it was reported earlier this week that a semiconductor plant damaged by the fire in Japan to which it is disproportionately exposed has almost returned to full capacity, “Brinkman said. “Ford’s outlook may also benefit more from the continued strong pricing environment, as we estimate that its management may have been more cautious at the time of first-quarter earnings than GM’s on extremely strong pricing trends. of the first trimester throughout the year “.
Ford shares rose 2.6% in early trading on Friday to change hands at $ 16.42 apiece, the highest level since March 2015 and a move that would extend the stock’s annual gain to around $ 16.42 each. 85%.
Meanwhile, GM shares rose 0.6% to $ 63.85 each.
Ford warned last month that the current global semiconductor shortage would cost it about $ 2.5 billion, more than double its previous estimate, and would likely last until at least the first half of 2022 after its first-quarter earnings forecasts. crushed with a bottom line of $ 3.3 billion, the best in a decade, with revenue of $ 36.2 billion.
“Ford’s new leadership team has really changed the narrative for the company,” said Jeff Marks, senior portfolio analyst at ActionAlertsPLUS. “It used to be a dinosaur in space, but instead they have now released some very exciting electric products like the Ford F-150 Lightning, which had over 70,000 pre-orders as of last week, and the E-Transit Van that It will be released later this year. “