Analysts raised Ford’s price target to $10.96 (from $10.80) on solid Q2 results and improved U.S. auto sales forecasts, though rising competitive pressure from Japanese imports and tariff-related pricing headwinds temper the outlook.
Analyst Commentary
- Japanese trade deal lowers vehicle import tariffs for Japanese automakers entering the U.S. to 15% from 25%, increasing competitive pressure on Ford as domestic OEMs do not benefit equally.
- Ford and GM continue to face higher tariffs (25%) on vehicles imported from Korea, Canada, and Mexico, putting them at a relative disadvantage in North American trade.
- Bullish analysts are raising Ford’s price target in response to generally solid Q2 results and a healthy start to the year, though they express uncertainty about performance in the second half of 2025.
- Bullish analysts point out that while measured tariff levels are lower than initially proposed, tariffs will likely raise vehicle pricing in the second half, potentially moderating sales volumes after some demand was pulled forward.
- Moderate increases in projected U.S. auto sales for 2025 and 2026 (to 15.75M and 15.50M units, respectively) support improved sentiment, even as the sector faces ongoing challenges from trade and pricing dynamics.
What's in the News
- Ford plans to cut up to 1,000 jobs and shift to single-shift operation at its Cologne electric vehicle plant in Germany, citing weak EV demand in Europe (Reuters, 2025-09-16).
- Ford is seeking buyers for excess battery supply from its BlueOvalSK JV factory in Kentucky, reflecting potential overcapacity in EV components (Bloomberg, 2025-08-19).
- Ford has announced job cuts exceeding 470 positions at its South African plants in Pretoria and Gqeberha, continuing global workforce reductions (Bloomberg, 2025-08-29).
- Workers narrowly voted for union representation at the Ford-SK On battery plant in Kentucky, though the outcome is subject to challenge amid contested ballots (New York Times, 2025-08-28).
- Ford's $3B EV battery plant in Michigan will still qualify for federal tax credits despite recent legislative changes that otherwise restrict eligibility (New York Times, 2025-07-10).
Valuation Changes
Summary of Valuation Changes for Ford Motor
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $10.80 to $10.96.
- The Consensus Revenue Growth forecasts for Ford Motor has significantly fallen from -0.2% per annum to -0.3% per annum.
- The Net Profit Margin for Ford Motor remained effectively unchanged, moving only marginally from 3.58% to 3.64%.
Disclaimer
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