Deutsche Bank Boosts Numbers on Ford (F), Calls Top Pick; Shares Undervalued

Deutsche Bank boosted its estimates and price target on Buy-rated Ford (NYSE: F) from $16 to $18.

The firm comments, "Although we see both Ford and GM as undervalued, Ford appears particularly well-positioned in 2012, due to: 1) Ford’s product refresh rates in 2011 (16%) and 2012 (28%) should contribute to further pricing upside in 2012 / 2013; 2) F is more defensive in a rising fuel price environment ($100MM impact from 100bp’s in production mix shift to cars in 2011, compared to $750MM for GM); 3) We expect the return of significant operating leverage in 2012, as commodities become neutral ($1.5bn) and unusual headwinds in 2011 at least partially reverse ($1.3bn)."

Q1 EPS goes down from $0.41 to $0.36, FY12 EPS goes from $1.41 to $1.51 and FY13 goes from $1.60 to $1.67.

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 $12.24 yesterday.

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