Ford said on Wednesday that it would recall more than 700,000 vehicles of its 2020 model in North America because of faulty backup camera. The affected vehicles include several brands including Ford Explorer, Ford F-150, Ford Mustang, Ford Escape, and Ford Ranger.
Ford (F) said it found a fault in the backup camera of the vehicles, which can show distorted images or suddenly go dark. The automaker stated, “Affected vehicles have insufficient electrical conductivity within the printed circuit board internal to the camera. A rearview camera that intermittently displays a blank or distorted image would not comply with Federal Motor Vehicle Safety Standards and requires corrective action by the manufacturer.”
Of the total, 620,246 vehicles will be recalled in the US and federal territories, 4,302 in Mexico and 76,566 in Canada. The move will require dealers to replace the rearview camera of affected vehicles. Ford will start sending its official notifications to customers and dealers from November 7. (See F stock analysis on TipRanks).
On August 17, in a broader industry research note Credit Suisse analyst Dan Levy said that Ford should use the strength in its North American trucking business to fund its electric vehicle development programs. Levy reaffirmed a Hold rating on the stock and a price target of $8 (20.1% upside potential).
Currently, the Street is sidelined on the stock with a Hold analyst consensus. With shares down nearly 28.4% year-to-date, the average analyst price target of $7.46 implies upside potential of 12% from current levels.