By Sarah Roden
Who?
The Ford Motor Company (NYSE:F), based in Dearborn, Michigan. Ford is an automobile manufacturing company most known for the brands Ford and Lincoln.
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More
What?
Ford released its Q3 report on October 24th. Here’s how it fared compared to analysts’ expectations:
As demonstrated by the numbers, Ford Motor Company (NYSE:F)’s Q3 report fulfilled analysts’ expectations but also highlighted its troubles. Between recalls and a decrease in wholesale volume, Ford experienced many year-over-year decreases in the Q3 report. Analysts expect that Ford will post $1.11 earnings per share for the current fiscal year.
President and CEO Mark Fields has his eyes trained on future goals noting, “During the third quarter, we continued to introduce an unprecedented number of new vehicles and invest heavily in the new products and technologies that will deliver strong profitable growth beginning next year… Everyone at Ford remains focused on accelerating our pace of progress, while delivering product excellence and innovation in every part of our business.”
Buy? Sell? Hold?
On October 27th, Rod Lache of Deutsche Bank reiterated a Buy rating on Ford with a price target of $16. Lache acknowledged concerns stemming from the Q3 report but seemed optimistic about the future as he noted, “We believe that Investors’ concerns about F’s prospects are legitimate,” continuing to state that Ford’s efforts to increase fuel efficiency bode well for the stock. Ford’s significant “Free Cash flow… represents the primary underpinning of a favorable risk/reward.” Lache concluded, “More importantly, we believe that the company is poised to significantly increase the proportion that is returned to shareholders.” Rod Lache has an overall success rate of 56% recommending stocks with a +14.7% average return per recommendation.
Separately on October 27th, Brian Johnson of Barclays maintained an Equal-Weight rating with a price target of $16. Johnson noted that “The focus for investors remains on the F-150 launch,” which can take up to six months. Until then, Johnson says that Barclays continues “to expect the stock to remain in a holding pattern.” Johnson has an overall success rate of 56% recommending stocks with an average return of -0.9% per recommendation.
Conclusion:
The current status of Ford’s stock is as follows:
To see more recommendations for Ford Motor Company (NYSE:F), visit TipRanks today!
Sarah Roden writes about stock market news. She can be reached at [email protected]
