There’s an opportunity brewing in Ford stock, analyst says
From mega to micro caps, the 2022 stock market has shown little mercy for big hitters or small fry, with valuations across the board in tatters. Of course, the silver lining for investors is that you can now buy shares of companies at what could be considered very attractive entry points.
With shares down 40% year-to-date, 5-star Tigress analyst Ivan Feinseth thinks Ford (F) the stock looks particularly attractive right now. Feinseth believes the recent pullback “creates a compelling entry point” and cites several reasons why the auto giant is poised to rebound.
The company’s “industry-leading” F-Series trucks and SUV models are in high demand, Feinseth says, as Ford continues production of its electric vehicle offerings, including the Mustang Mach-E, E- Transit and F-150. Flash. The latter’s production launch on April 26 saw the F-150 Lightning enter the electric pickup market ahead of a number of competitors, while its 2022 “production” run has already run out.
Ford acclimated to the new automotive paradigm, with the company transforming its production methods. Ford now has “two separate manufacturing business units highlighting electric vehicle production success and value.” There is the Ford Model E manufacturing unit, which will operate as a separate entity from its ICE manufacturing segment which has been given the title Ford Blue.
Ford doesn’t mess around with its EV initiatives. To develop and expand its production capabilities, over the next four years the company intends to invest $50 billion in electric vehicles. By the end of 2026, the company aims to produce more than 2 million electric vehicles per year and, by 2030, aims to have 40% of global vehicle production “fully electric”.
With new products continually being rolled out as the company makes further inroads internationally, Feinseth believes that “Ford’s consistent long-term history of returning cash to shareholders will drive greater value creation at long term for the shareholders”.
As a result, Feinseth believes there is “significant upside” from here and reiterates a buy rating on Ford shares with a price target of $22. The figure suggests a 77% increase from current levels. (To see Feinseth’s track record, Click here)
What does the rest of the street think? Looking at the consensus distribution, the opinions of other analysts are more dispersed. 8 buys, 9 holds and 2 sells add up to a moderate buy consensus. Moreover, the average price target of $19.94 indicates an upside potential of around 61%. (See Ford stock predictions on TipRanks)
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Disclaimer: Opinions expressed in this article are solely those of the featured analyst. The Content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.