Jefferies Starts Ford (F) at Buy, Sees 33% Upside
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Price: $14.41 +3.00%
Rating Summary:
12 Buy, 23 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 23 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies initiates coverage on Ford (NYSE: F) with a Buy rating and $19 price target.
The firm said, "Expectations appear to be low enough for Ford in 2011 that it offers an attractive means to participate in continued upside risk to industry sales volumes, with below-average downside risk due to the stock's reasonable 4.3x EV/EBITDA valuation."
Jefferies notes the North American auto industry is the healthiest it's been in 15+ years. In addition, Ford's product cadence, an important driver of sales and pricing, is strong.
Ford has strong top-line leverage, the firm notes. "We estimate that every one million increase in annual sales to our low-end 12.7 million SAAR forecast contributes roughly $0.17 to 2011e EPS (or +10% vs. our $1.72 base), assuming flat market share."
For more ratings news on Ford click here and for the rating history of Ford click here.
Shares of Ford closed at $14.26 yesterday.
The firm said, "Expectations appear to be low enough for Ford in 2011 that it offers an attractive means to participate in continued upside risk to industry sales volumes, with below-average downside risk due to the stock's reasonable 4.3x EV/EBITDA valuation."
Jefferies notes the North American auto industry is the healthiest it's been in 15+ years. In addition, Ford's product cadence, an important driver of sales and pricing, is strong.
Ford has strong top-line leverage, the firm notes. "We estimate that every one million increase in annual sales to our low-end 12.7 million SAAR forecast contributes roughly $0.17 to 2011e EPS (or +10% vs. our $1.72 base), assuming flat market share."
For more ratings news on Ford click here and for the rating history of Ford click here.
Shares of Ford closed at $14.26 yesterday.
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