CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month price target by $1 to $12, based on ’25 P/E of 6.3x and a justified discount to F’s five-year mean forward P/E of 8.2x. We lower our adjusted EPS estimates to $2.00 from $2.10 for ’23, to $1.80 from $2.05 for ’24, and introduce ’25 at $1.90. Ford posts Q3 adjusted EPS of $0.39 vs. $0.30 (+30%), short of the $0.46 consensus. Automotive revenue rose 11% to $41.2B ($1.3B below consensus) and adjusted EBIT margin expanded 40 bps to 5.0%. Like GM earlier this week, Ford withdrew prior 2023 guidance pending the ratification of its tentative labor agreement with the UAW that was announced last night. While we think the new labor deal will be ratified, we view the concessions the company made as significant and they will weigh on margins and affect its competitiveness relative to Tesla and other non-union automakers. Comps should also turn much less favorable in 2024 and we see a higher-for-longer interest rate scenario hurting sales volumes. We reiterate our Hold opinion on the shares.