Standpoint Research Upgrades Ford (F) to Buy, $17 Target

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F Hot Sheet

Rating Summary:
9 Buy, 4 Hold, 0 Sell

Rating Trend: Down

Down

Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23

Standpoint Research upgraded Ford (NYSE: F) from Hold to Buy with a price target of $17.00.

The firm comments, "We recommended Ford Motors for the first time on 9-November-2009 @ $8.18. The position was closed out on 13-January-2010 with a 42.8% gain and +3800 bps versus the S&P-500. During the last two yearsSince outr downgrade, Ford shares have underperformed the consumer discretionary ETF XLY by ~ 4000 bps and underperformed the S&P-500 by > 2000 bps. We are reinstating theis recommendation at this time, but it is risky and not recommended for those who are already significantly overweight in consumer discretionary and/or holding on to a high-beta portfolio.

We arrive at our $17 target for 2013-2014 by attaching an 8X-9X multiple to ~ $2.00 in EPS potential/expectations. There are many variables dictating the situation here. Some are moving in the right direction such as international expansion and dowmestic sales … and some are moving in the wrong direction such as European sales and certain expenses. International revenues account for 40% of total revenues at Ford."

For an analyst ratings summary and ratings history on Ford click here. For more ratings news on Ford click here.

Shares of Ford closed at $12.38 yesterday, with a 52 week range of $9.05-$16.18.

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