UBS sees 20% upside in Ford stock despite looming UAW strikes

Ford Motor Co (NYSE: F) has been a disappointment for its shareholders over the past two months but a new UBS analyst is convinced the story moving forward will be a different one.

Ford stock could climb back to $15

On Wednesday, Joseph Spak assumed coverage of the legacy automaker with a “buy” rating and said its shares could climb back to $15 – about a 20% upside on its previous close.

The bullish call on Ford stock arrives at a time when the United Auto Workers looks only days away from going on strike. But Spak recommends that investors look past that and invest in the car company anyway.

According to the UBS analyst, shares of the multinational automobile manufacturer are inexpensive at 2.5 times their enterprise value (2025) to EBITDA.

Famed investor Jim Cramer also commented on his research note today.

UBS sees big potential in Ford Pro

Joseph Spak is particularly bullish on Ford Pro – a business unit within the New York listed firm that is dedicated to serving commercial customers.

Ford Pro has a very strong position in the United States and European markets. According to Ford, nearly one in four fleets in the U.S. are Ford-only.

He expects that segment to grow its adjusted EBIT at a compound annualised rate of 5.0% through 2026 versus consensus at negative 1.0%. The UBS analyst also sees margin at just over 15% in 2026.

Spak is bullish on Ford stock even though the company saw its EV sales decline 2.8% year-on-year in the second quarter as Invezz reported here.