DBS analyst Elizabelle Pang has maintained their neutral stance on F stock, giving a Hold rating on February 7.
Elizabelle Pang’s Hold rating for Ford Motor Company is influenced by a combination of factors, particularly the company’s shifting landscape in the electric vehicle (EV) market and its financial outlook. The report acknowledges Ford’s ambitious EV strategy, including the introduction of new models like the F-series trucks and Mach-E SUV, which could enhance the product mix and potentially lead to increased volumes over the next few years. Despite these positive developments, Ford’s EV segment is experiencing more significant losses than anticipated, with a projected increase in EBIT loss and a scaling back of investment due to softer EV demand and rising labor costs.
Moreover, the Hold rating takes into account Ford’s solid financial position, with sufficient liquidity to support business growth and an aggressive capital expenditure plan for its EV expansion. However, the company’s guidance for steeper losses in the EV sector and a general slowdown in battery investment casts a shadow over its future prospects. While Ford offers a firm dividend yield and a higher target price based on a stronger fiscal year outlook, persistent EV headwinds and potential risks associated with the execution of its EV strategy suggest a cautious approach, leading to the Hold recommendation.
In another report released on February 7, RBC Capital also maintained a Hold rating on the stock with a $12.00 price target.
F’s price has also changed slightly for the past six months – from $12.940 to $12.800, which is a -1.08% drop .
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Ford Motor (F) Company Description:
Ford Motor Company is a global automobile company and is the third largest car manufacturer in the United States. The firm is engaged in designing, manufacturing, and selling cars, trucks, and automobile parts. The company makes vehicles under two brand names – Ford and Lincoln. Its Ford family includes Fusion, Ecosport, Bronco, Explorer,Mustang Mach-E, F-150, and Ranger. Under the Lincoln brand, the company has popular models including Navigator, Aviator, and Nautilus.
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