Ford stock has 33% upside from here: Bernstein analyst

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on May 27, 2024
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  • Bernstein analyst sees upside in Ford Motor to $16 per share.
  • Daniel Roeska expects its Model e to break even in 2028.
  • Ford stock is already up some 20% versus its year-to-date low.

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Ford Motor Co (NYSE: F) is up roughly 20% versus its year-to-date low but a Bernstein analyst is convinced it has significant room still to the upside.

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Ford stock could climb to $16

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Daniel Roeska assumed coverage of the legacy automaker last week with a “buy” rating and said it shares could climb to $16 which translates to about a 33% upside from here.

The EV segment of $F known as the “Model e” lost $4.7 billion in 2023. Still, the Bernstein analyst told clients in a recent research note:

While electric execution looms large, we see a clear path to significant operating leverage and ultimately profits for the company’s EV unit.

Ford stock pays a rather lucrative 4.93% dividend yield at writing which makes up for another great reason to own it.

Model e will break even in 2028

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Earlier in May, Ford Motor said it swung to a profit in its first financial quarter (read more). According to Daniel Roeska:

The iconic automaker continues to enjoy strong profits from its core markets and a policy-driven investment cycle in the United States.

Roeska expects Model e to lose about $5.0 billion in 2024 followed by a decline until eventually the business breaks even in 2028.

He expects $F to be selling roughly 772,000 units annually of over a dozen electric vehicles by that year. By then, EVs will account for nearly 20% of the automaker’s total sales, the Bernstein analyst concluded in his note on Ford stock.

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