12:29 PM EDT, 07/25/2024 (MT Newswires) -- Ford Motor's ( F ) core Ford Pro commercial vehicle business, which partially offset the impact of disappointing Ford Blue results on Q2 earnings, is expected to help deliver strong profits in the future, BofA Securities said Thursday.

According to BofA, Ford management has prioritized the core business in terms of capital allocation.

"There is some time to go before all the new investments Ford is making materialize. However, with a strong near-term product cadence combined with management's focus, we expect strong profits and progress," BofA said in a report.

The firm said Ford Pro "continued to shine and was a partial offset to Ford Blue," which was hit by higher warranty costs and expenses, resulting in the Q2 earnings miss.

BofA lowered its earnings and revenue estimates for Ford following the Q2 results.

It now expects earnings per share of $1.92 for 2024, $2.35 for 2025, and $2.80 for 2026, down from its previous forecasts of $2.05, $2.40, and $2.85, respectively.

For revenue, BofA now forecasts $171.2 million for 2024, $175 million for 2025, and $186.1 million for 2026, down from $174.4 million, $178.9 million, and $190.5 million, respectively.

BofA reiterated its buy rating on the stock while lowering its price target to $20 from $22.

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