Consensus Forms That Despite Tremendous YTD Move, Ford (F) Is Still Undervalued

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F Hot Sheet

Rating Summary:
9 Buy, 4 Hold, 0 Sell

Rating Trend: Down

Down

Today's Overall Ratings:
Up: 25 | Down: 12 | New: 36

With a 250 percent move higher year-to-date, investor sentiment in Ford Motor (NYSE: F) has clearly shifted to a positive bias, but are shares still undervalued?

Looking at recent Wall Street coverage on the automotive-standout shares could still have considerable room to run.

Today, Standpoint Research was the latest firm pounding the table on the only major U.S. automaker not to receive a government bailout. Standpoint's Ronnie Moas initiated coverage on the stock with a Buy rating and aggressive $12 price target.

Moas stated that with housing declines beginning to moderate and consumer confidence setting in, there would be incremental demand for new vehicles. Moas said if light vehicle sales continue to rebound, it will not be a problem for Ford to earn $2.00 a share or higher in 2011-2012. Moas said despite the recent share spike, if you take a multiple of half of peak earnings, shares are still undervalued.

The average Wall Street price target on Ford is now $10.64, according to Bloomberg data, and that does not even include today's new $12 price target which will raise it further. Buckingham is the 'Street High' at $15 per share.

With Ford trading at $8.05 per share today, Wall Street still thinks there is 32 percent upside. Standpoint Research's new coverage suggests there is about 50 percent upside and Buckingham's price target suggest there is still 86 percent upside.

With today's new coverage and other recent positive ratings, the consensus for Ford is moving up faster and faster. As this shift continues and investors react, shares will likely move closer to the double-digit range.

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