Remember yesterday, when word emerged that legacy automaker Ford (F) CEO Jim Farley believed that the tariffs currently in place would go on for the next three years? If that is the case, it may prove good news for Ford, as Ford is convinced that the tariffs are producing ideal conditions for a real fight for Ford. Investors, meanwhile, are a little less sure, hesitantly sending shares up modestly in Thursday afternoon’s trading.
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Farley is actually pretty happy about conditions right now, because they are, in many ways, ideal for Ford. Farley described recently how he had to fend off questions about why Ford did not “localize overseas” and produce more in other countries like Ford’s competitors did. But Ford stuck to its guns, stayed American—or about as American as it could—and now enjoys an advantage over the companies that “localize(d) overseas.”
Though the picture was not completely ideal. Ford noted that its costs could increase as much as $1.5 billion just this year alone. The key advantage there, though, is that Ford’s competitors’ costs will likely be higher by comparison. All of that combined led Farley to declare that this is “…the fairest fight we’ve had in a couple of decades.”
Ford Under the Hood at De Tomaso
Those not familiar with De Tomaso are likely not racing buffs, and not racing buffs from several years ago. But, in a move that is likely part of Ford’s ongoing “no boring cars” campaign, Ford is back serving as the power under the hood with De Tomaso once more in the P72. The P72 is described as “…a homage to the P70 which raced just once in 1970,” and offers “…classic sports prototype lines with modern underpinnings and technology.”
Meanwhile, Ford serves as the engine: a “…hand-assembled 5.0-litre V8 engine,” a “…heavily modified and supercharged Ford Coyote.” Given that Ford once owned a part of De Tomaso, this is considered as a fitting connection. The best part? You can actually own a De Tomaso P72…if you happen to have cash sufficient to not have to ask how much it runs.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 11 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 13.97% loss in its share price over the past year, the average F price target of $9.70 per share implies 9.98% downside risk.
