Goldman Sachs Raises Price Target on Ford (F) To $11
Goldman Sachs lifted their price target on Ford Motor (NYSE: F) from $9.50 to $11, while reiterating their Conviction Buy List rating, following better-than-expected results yesterday. The firm said the turnaround plan is ahead of expectations.
The firm raised 2009/2010/2011 EPS estimates to ($0.49), $0.71 and $1.04, from ($1.35), $0.30 and
$1.00. The firn's new estimates factor in 7% dilution from an announced capital raise of $1bn in equity and $2bn in convertible notes.
The firm commented "3Q09 validates that product positioning and tight inventories are paying significant pricing dividends and it comes at a critical time, as future improvements will be increasingly driven by volume and revenue management, and be less dependent on large structural costs reductions."
The firm said even after yesterday’s rally, shares are still well short of pricing in the 5% EBIT margins that they expect by 2012 and which they would see justifying a $15 share price.
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