Automobile major Ford Motor Company (NYSE:F) recently revealed that it has entered into an agreement with data analytics provider Verisk (NASDAQ: VRSK) to offer standardized, insurance-ready telematics data from connected Ford vehicles in Europe. The service will be made available in UK, France, Germany, Italy and Spain.
Following the news, shares of the company rose almost 1% to close at $16.12 in Tuesday’s extended trading session.
Strategic Impact
The partnership aims to assist insurers by assessing their driving behavior and developing usage-based insurance programs. This will allow insurers to get a clearer view of driver risk, while consumers will be able to get customized insurance offerings for their Ford vehicles.
Users’ data will be accessed by Verisk’s Data Insight Hub with their consent. With this access, insurers will be able to make use of standardized metrics that Verisk generates from connected Ford vehicles, providing them with insightful data regarding their driving behavior.
Management Commentary
Director of Business Operations, Enterprise Connectivity, Ford of Europe, Mark Harvey, said, “We are delighted to extend our agreement with Verisk into Europe. Through their innovative analytics solutions, we are able to make sure that our customers receive the most accurate and budget-friendly insurance plan options, rewarding safe driving behaviour.”
Stock Rating
Recently, Credit Suisse analyst Dan Levy reiterated a Buy rating on the stock with a price target of $25, which implies upside potential of 56% from current levels.
The analyst said, “While there are a number of challenges that must be addressed in this transition, we believe it is a key positive for Ford – not only do we expect the reorg to accelerate Ford’s transition to an EV world, but with this corporate structure investors will have better transparency on Ford’s transition to EVs, and could better reward Ford.
“Broadly, we continue to be positively surprised by Ford – as we noted in our upgrade of Ford last fall, Ford has seen the dawn of a new era, sharply improving its positioning in an EV world…which should lead to significant value creation ahead.”
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 8 Buys, 6 Holds and 2 Sells. The average Ford stock prediction of $23.13 implies that the stock has upside potential of 44.3% from current levels. Shares have gained 27.5% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Ford’s performance this quarter.
According to the tool, year-to-date, the Ford website traffic recorded a fall of 7%, compared to the previous year.
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