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Research Alert: CFRA Maintains Hold Opinion On Shares Of Ford Motor Company
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Ford Motor Company
Jul 1, 2025 11:53 AM

02:15 PM EDT, 07/01/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $2 to $11, on a 2026 P/E of 9.6x, a justified premium to U.S. automaker competitors. We raise our 2025 adjusted EPS estimate to $1.00 from $0.90 and keep 2026's at $1.15. Ford posted Q2 U.S. auto sales of 612,095 units (+14.2% Y/Y), short of Cox Automotive's Q2 estimate for F (+14.6%) but well ahead of the 1.7% estimated growth for U.S. new vehicle sales as a whole in Q2. By powertrain type, hybrid (+23%) and internal combustion vehicle sales (+15%) drove the increases, while EV sales lagged (-31%). The fact Ford's U.S. sales outperformed the industry by a wide margin in Q2 wasn't a major surprise, as its April and May sales had already been released. We think the key question is whether the results are sustainable. We maintain our Hold rating on valuation, concerns that consensus estimates are too high, relatively weak cash returns to shareholders, and a poor track record in terms of operational results (specifically margin improvement) and meeting Street expectations.

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