Ford set to skyrocket 34%, analyst says
Ford (NYSE: F) cannot compete with the performance of market darlings like electric vehicle maker NIO (NYSE: NIO), which has climbed 1000% this year. But the old-fashioned automaker has held up, up 42% in the past six months, and is up more than 120% from its low point in March at the start of the year. pandemic.
Benchmark analyst Michael Ward reiterated his buy rating on Ford stock on Monday and, in a research note to investors, raised his price target to $ 12 from $ 11, an increase of 34% compared to its current level.
Ready to ride higher
Ward pointed to improving industry sales in North America as one of the reasons for his more optimistic assessment of Ford’s outlook.
Independent industrial site Wards Intelligence reports that sales of new light vehicles edged down in November and are down nearly 17% year-to-date compared to last year, but fleet sales are picking up after months of decline.
While still down significantly from last year, the 25% drop in November is seen as an improvement given that sales fell 53% from March to September. There is a feeling that the widespread delivery of COVID-19 vaccines could trigger a car buying boom next year.
The Benchmark analyst also looked at the introduction of new products, restocking and Ford’s own restructuring as helping to improve the outlook. While others see the actions really turnaround story be one for 2022, the improvements the automaker has already made could help boost profits next year, which could trigger further gains in Ford shares sooner than that.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.