Ford (F) PT Raised to $22 at Tigress Financial Partners

Tigress Financial Partners analyst Ivan Feinseth raised the price target on Ford (NYSE: F) to $22.00 (from $20.00) while maintaining a Buy rating.

The analyst comments "We reiterate our Buy rating on Ford and increase our 12-month target price to $22 as strong demand for their ICE (Internal Combustion Engine) vehicle lineup led by F-series trucks and SUVs drive near-term revenue while the ongoing transition and its aggressive electrification investment initiatives will drive long-term share price gains. Ford continues to experience strong demand for its industry-leading F-series trucks and SUV models, including the very popular relaunch of its Bronco series as it ramps up production of its EV models, including Mustang Mach-E, E-Transit, and F-150 Lightning, which just went into production in late April. The production launch on April 26th of the F-150 Lightning brings Ford into the EV pickup market ahead of several other competitors, and it is already sold out of its 2022 production run. The recent pullback in price also creates a compelling entry point and value as it begins its ongoing ramp-up of EV production following the recently announced production transformation, forming two distinct manufacturing business units highlighting EV production success and unlocking value. Ford recently shifted its management focus into two separate manufacturing units, Ford Model E, which will operate separately from its ICE manufacturing unit, called Ford Blue. Ford Model E will accelerate its innovation of EV and AV technology production. Ford Blue will continue production and development of the company’s portfolio of ICE vehicles and, along with Ford Pro, will be operated as three distinctive P&Ls by 2023. Ford recently announced significant EV initiatives with plans to invest $50 billion over the next four years to develop and expand its EV production as it ramps up to produce over 2 million EVs per year by the end of 2026 with a goal of 40% of global vehicle production being fully electric by 2030. Ford’s EV initiatives include creating Ford Ion Park, a global battery center with over 150 experts in battery testing, manufacturing, and value chain management to boost battery range and reduce costs. Ford will vertically integrate its battery technology with an extensive range of EV Batteries, including IonBoost lithium-ion, IonBoost Pro lithium iron phosphate for commercial vehicles, and long-range, low-cost solid-state batteries based on engineering from Ford and Solid Power. Ford has formed a joint venture, BlueOvalSK, with South Korea’s SK Innovation to develop two new battery plants in Stanton, Tennessee, and Glendale, Kentucky, to produce lithium-ion batteries in 2025. Ford’s ongoing rollout of new products along with international expansion and consistent long-term history of returning cash to shareholders will drive greater long-term shareholder value creation. We believe significant upside exists from current levels, and our 12-month target price of $22 combined with its dividend yield represents a potential total return of over 70% from current levels."

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