Piper Jaffray Starts Ford (F) at Overweight; Fair Outlook, Big Balance Sheet, 4.5% Div Yield

(Updated - June 10, 2016 6:56 AM EDT)

Piper Jaffray initiated coverage on Ford (NYSE: F) with an Overweight rating and a price target of $17.00, citing a fair outlook, big balance sheet and 4.5% dividend yield.

Analyst Alexander Potter commented, "We are initiating coverage of Ford Motor Company (F) with an Overweight rating and a $17 price target. As with its rival GM, we think Ford should be attractive to value investors. The stock currently trades at 6.3x our 2016 EPS estimates vs. a post-recession range of 5x-13x. We think the stock is pricing in more bad news than is justified. While the U.S. auto cycle is undeniably “long in the tooth,” this doesn’t necessarily imply an impending drop in vehicle sales. Stable demand in the U.S., rising market share in China and improving margins in Europe could combine to drive more earnings growth than is currently implied by PJC/Street estimates. But even if not, Ford offers a 4.5% dividend yield (6.3% including the special dividend) to protect against downside."

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 $13.36 yesterday.

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