Shares of Ford Motor Co
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
- Bank of Securities analyst John Murphy maintained a Buy rating, while reducing the price target from $20 to $19.
- RBC Capital Markets analyst Tom Narayan reiterated a Perform rating and price target of $10.
Management lowered their 2024 adjusted EBIT outlook to $10 billion, from their prior projection of between $10 billion to $12 billion, with Ford Blue and Ford Pro being "the major drivers of the guidance change," the analyst wrote. Given its "strong near-term product cadence combined with management's focus," Ford is poised for better profits and progress beyond 2025, he further stated.
RBC Capital Markets: Ford delivered disappointing quarterly results, led by Pro, with seasonality being "a key factor," Narayan said. While there are plant shutdowns planned for the second half of the year, Ford has also indicated price pressure at Pro, he added.
Although Ford's guidance reduction was largely expected, it suggests a sequential decline in the fourth quarter, the analyst stated. Management's commentary was cautious around Model E, with stiffening competition expected in 2025 and "no confirmation that losses would improve," he further wrote.
Price Action: Shares of Ford Motor had declined by 8.22% to $10.44 at the time of publication on Tuesday.