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 target by $1 to $14, based on a 2025 P/E of 7.6x, a justified discount to historic averages. We increase our 2024 EPS estimate to $1.85 from $1.80, but leave 2025 at $1.85. Ford posted Q1 U.S. auto sales of 508,083 units (+6.8% Y/Y), ahead of expectations and outperforming average U.S. sales growth of 5.5%. Ford’s results indicated a growing consumer appetite for hybrids, where sales jumped 42% Y/Y in Q1, driven by the Maverick hybrid (+77%). Ford’s U.S. EV sales growth was also robust, rising 86% Y/Y to 20,223 units. Ford’s U.S. sales growth was impressive relative to archrival GM, where volumes were -1.5% Y/Y in Q1. The bad news for Ford and the Detroit Three is that near-term comps will be significantly more difficult and labor costs higher as a result of the new UAW labor contract. With inventories growing rapidly, we expect new vehicle prices to remain under pressure and incentives to continue increasing. We increase our price target, but maintain a Hold on F shares due to valuation.