#Analysts #Uninspired #Fords #Earnings #Remain #Bullish #Long #Term #Heres
Key takeaways
- JPMorgan and Bank of America analysts cut their price targets for Ford following the automaker’s third-quarter results.
- The company failed to meet Wall Street earnings estimates due in part to “persistently high warranty expenses,” according to JPMorgan.
- Bank of America said the company’s Ford Pro trading division is a reason for optimism in the long term.
Shares of Ford (F) fell on Tuesday, as analysts from JPMorgan and Bank of America lowered their price targets following the automaker’s disappointing third-quarter results.
Ford shares fell more than 8% Tuesday morning. The company reported Monday that third-quarter earnings missed analysts’ expectations and trimmed its full-year outlook, forecasting adjusted full-year earnings of about $10 billion, compared with its previous estimate of $10 billion to $12 billion.
JPMorgan analysts cut their price target to $14 from $15, citing the company’s “persistently high escrow expenses.” Which gives it an overweight rating.
Bank of America cut its price target to $19 from $20, citing lower-than-expected revenue from Ford Blue, the company’s gas-powered and hybrid passenger car division. But he maintained a buy call on the company.
The Ford Pro division is reason for optimism, notes BofA
Bank of America cited Ford’s “positive image” of its recent operations, noting that the automaker’s management cited strength in the core truck market — especially its Professional division, which serves commercial customers.
Third-quarter revenue at the Ford Pro division rose 13% year-over-year and above Wall Street estimates, while paid software subscriptions for Ford Pro Intelligence jumped 30%.
Bank of America said it maintained the buy call due to Ford’s “strong near-term product cadence as well as management focus.”
[W]“We expect better earnings and progress in 2025+,” Bank of America said.
Meanwhile, JPMorgan said it would maintain its overweight rating on Ford stock due to the “deep value” its shares provide. Tesla (TSLA), although one of the few profitable battery electric vehicle (EV) makers, is expected to generate a much lower level of free cash flow this year than Ford, the broker noted.
Ford shares fell 8% on Tuesday.
#Analysts #Uninspired #Fords #Earnings #Remain #Bullish #Long #Term #Heres
