tiprankstipranks
Trending News
More News >
Advertisement
Advertisement

Ford Motor’s Strategic Shift and Financial Outlook: Analyst Recommends Hold Amid Execution Risks

Ford Motor’s Strategic Shift and Financial Outlook: Analyst Recommends Hold Amid Execution Risks

Morgan Stanley analyst Andrew Percoco has maintained their neutral stance on F stock, giving a Hold rating today.

Claim 50% Off TipRanks Premium and Invest with Confidence

Andrew Percoco has given his Hold rating due to a combination of factors related to Ford Motor’s strategic shifts and financial projections. Ford has recently announced a significant $19.5 billion charge as part of its efforts to streamline its electric vehicle operations, marking a major adjustment in its business strategy. This move is accompanied by a renewed focus on gas, hybrid, and extended-range electric vehicles, which Ford hopes will improve returns and expand margins.
While Ford has raised its 2025 adjusted EBIT guidance and expects its free cash flow to trend towards the higher end of its target range, the success of these initiatives largely depends on the company’s ability to effectively execute its new strategy. The transition involves expanding hybrid offerings and investing in a universal EV platform, with ambitious targets for 2030. Despite these positive steps, the execution risks and the need to restore investor confidence justify a Hold rating at this time.

In another report released today, Barclays also maintained a Hold rating on the stock with a $12.00 price target.

Disclaimer & DisclosureReport an Issue

1