Federico Merendi, an analyst from Bank of America Securities, reiterated the Buy rating on Ford Motor. The associated price target was raised to $14.50.
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Federico Merendi has given his Buy rating due to a combination of factors that highlight Ford Motor’s strong performance despite some challenges. The company reported a third-quarter adjusted EPS of $0.45, surpassing both Bank of America’s estimate of $0.37 and the consensus of $0.36. This performance was driven by robust wholesale volumes in Ford Blue and Pro segments, which contributed to a total adjusted EBIT increase of approximately 1% year-over-year, beating the firm’s estimate by 23%.
Despite facing a $700 million net tariff headwind and the negative impact of a fire at an aluminum plant, which is expected to affect fourth-quarter volumes and EBIT, Ford’s underlying business remains strong. The company plans to increase production of its F-150 and SuperDuty models by over 50,000 units in 2026 to offset these volume losses, which is anticipated to enhance earnings in that year. Although Ford has reduced its 2025 guidance due to the plant fire, the company is on track to meet the high end of its February guidance range, indicating resilience and potential for future growth.
In another report released on October 20, J.P. Morgan also maintained a Buy rating on the stock with a $14.00 price target.