- The shares of Ford Motor Company (NYSE: F) have received a $22 price target from Tigress Financial Partners. These are the details.
The shares of Ford Motor Company (NYSE: F) have received a $22 price target from Tigress Financial Partners. And Tigress Financial Partners analyst Ivan Feinseth increased the price target on Ford from $20 while maintaining a “Buy” rating on the shares.
Feinseth adjusted the rating while noting that the strong demand for their internal combustion engine (ICE) F-series trucks and SUVs will drive near-term revenue, while the company’s aggressive electrification investment initiatives could drive long-term share price gains.
“Ford continues to experience strong demand for its industry-leading F-series trucks and SUV models, including the very popular relaunch of its Bronco series as it ramps up production of its EV models, including Mustang Mach-E, E-Transit, and F-150 Lightning, which just went into production in late April. The production launch on April 26th of the F-150 Lightning brings Ford into the EV pickup market ahead of several other competitors, and it is already sold out of its 2022 production run,” wrote Feinseth in a research note. “The recent pullback in price also creates a compelling entry point and value as it begins its ongoing ramp-up of EV production following the recently announced production transformation, forming two distinct manufacturing business units highlighting EV production success and unlocking value. Ford recently shifted its management focus into two separate manufacturing units, Ford Model E, which will operate separately from its ICE manufacturing unit, called Ford Blue. Ford Model E will accelerate its innovation of EV and AV technology production. Ford Blue will continue production and development of the company’s portfolio of ICE vehicles and, along with Ford Pro, will be operated as three distinctive P&Ls by 2023. Ford recently announced significant EV initiatives with plans to invest $50 billion over the next four years to develop and expand its EV production as it ramps up to produce over 2 million EVs per year by the end of 2026 with a goal of 40% of global vehicle production being fully electric by 2030.”
Ford’s EV initiatives include creating Ford Ion Park, a global battery center with over 150 experts in battery testing, manufacturing, and value chain management to boost battery range and reduce costs. And Ford will vertically integrate its battery technology with an extensive range of EV Batteries, including IonBoost lithium-ion, IonBoost Pro lithium iron phosphate for commercial vehicles, and long-range, low-cost solid-state batteries based on engineering from Ford and Solid Power.
Plus Ford has formed a joint venture called BlueOvalSK with South Korea’s SK Innovation to develop 2 new battery plants in Stanton, Tennessee, and Glendale, Kentucky, to produce lithium-ion batteries in 2025. And Ford’s rollout of new products along with international expansion and consistent long-term history of returning cash to shareholders will drive better long-term shareholder value creation.
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