Ford Shares Surge After Analyst Raises Price Target
Shares of Ford Motor Co. rose as much as 8 percent during Monday's session after an increased price target, according to MarketWatch.
Benchmark analyst Michael Ward raised his rating from to buy from hold and set a price target of $10. Ward believes Ford's third-quarter earnings and a new management team give the stock upside. The $10 price target represents 38 percent upside from Friday's closing price of $7.25.
"Better than expected North American production, a positive shift in mix, and improving metrics in the auto credit markets, in our view, are the primary drivers for better than expected earnings performance in the third quarter," Ward said. "The management changes along with new product momentum and the benefits of cost improvement actions, in our opinion, are positive variables for the stock."
Ford's third-quarter earnings are set to be reported on October 28. The automaker recently named CFO Jim Farley CEO, effective October 1. John Lawler was named the new CFO. Ford shares are still down 22 percent year-to-date through Friday. Investors seem to have more faith in other automakers and the overall market. Rival GM has seen a 12.1 percent decline year-to-date and the S&P500 is positive for the year.