© Reuters. Ford Motor (F) stock rallies as Citi upgrades to Buy on positive survey results
Citi analysts upgraded shares of Ford Motor (NYSE:) to Buy from Neutral with a price target of $16 per share, up from the prior $12.80.
The analysts say that the results of the recent survey pointed to “a surprisingly strong density outlook, suggesting that recent auto demand resilience reflects a genuine increase in wallet share.”
On Ford, the analysts commented:
“We see an opportunity for improved sentiment towards our $16 price target, which is still derived on what we’d consider prudent/conservative multiples.”
Overall, they are now more constructive on U.S. carmakers with General Motors (NYSE:) reaffirmed as the sector’s Top Pick.
“GM remains our Top Pick for several reasons: (1) Lack of Europe exposure reduces competitive risks. (2) Cruise, which could garner greater attention as a unique AI-play amid potential H2 catalysts (ODD expansion, Origin deployment). (3) Potential sentiment boost from GM’s Ultium EV launches and production ramp in H2. (4) Better execution track record in recent years. (5) Product cycle considerations (new crossovers in attractive price-points). (6) Low U.S. inventory with May numbers looking encouraging,” the analysts said in a client note.
Ford shares are up 2.6% in pre-market Friday.
Read the full article here
