10:53 AM EDT, 10/24/2025 (MT Newswires) -- Ford Motor ( F ) could make for a "compelling 2026 story" if the automaker is able to reduce its losses related to electric vehicles and tariffs come down further, RBC Capital Markets said.

The brokerage said in a Thursday note that it now expects Ford's 2026 earnings before interest and taxes to reach $7.9 billion, up from a prior estimate of $7.6 billion. RBC's forecast assumes tariffs remain at the current 25% level on Canada and Mexico and that the USMCA resolution occurs no later than July 2026.

With Ford lowering its 2025 adjusted earnings before interest and taxes guidance to a mid-point of $6.25 billion, RBC estimated a Q4 underlying EBIT of about $1.74 billion, reflecting higher warranty expenses and lower cost savings compared with prior quarters.

RBC also noted the company's EV losses, which increased to $1.4 billion in Q3, and is forecasting $4.9 billion in EV-related losses for the full year 2025.

The brokerage maintained its perform rating on Ford and raised its price target to $12 from $11.

Shares of Ford Motor ( F ) were up 9.4% in recent Friday trading.

Price: 13.50, Change: +1.16, Percent Change: +9.36