Ford Motor Company (NYSE: F) has outpaced the market by rising 108 percent in the last year. Bulls in particular are optimistic that Ford’s stock will continue to rise as Wall Street continues to support the electric vehicle revolution. Investors have also flocked to the company’s unveiling of the Ford Plus project, which includes a $30 billion investment in electric vehicles by 2025. The Ford Mustang Mach-E and the F-150 Lightning truck are two electric car models that are projected to be in high demand. According to Morgan Stanley analysts, Ford’s electric Mustang Mach-E has lately surpassed Tesla’s Y Model in market share. Ford’s outstanding Q1 2021 sales performance, which we shall detail below, has lately supported this remark. This article will examine Ford Motor Company’s stock forecast for the year 2022.
In 2021, Ford Motor Company will undergo a transformation.
To begin with, we have witnessed a significant transformation in the electric vehicle sector during the last 12 months. As a result, this has flooded into the markets, resulting in rapid growth for a wide spectrum of electric vehicle and energy enterprises. Ford Motor Company is revamping its business model to provide electric vehicles in order to compete with industry giants like Tesla.
Aside from making electric vehicles, the company is investing in battery technology to enable it to develop and manufacture its own batteries. Ford has launched Ford Pro, a separate business unit under Ford that will improve the uptime, affordability, and performance of electric vehicle fleets.
“I’m pleased about what Ford+ implies for our customers, who will benefit from new and improved experiences as a result of combining our iconic, world-class vehicles with connected technology that improves over time…
We’re grasping it with both hands because this is our biggest potential for growth and value creation since Henry Ford started scaling the Model T.” Jim Farley, President and CEO of Ford, stated in the company’s Q4 results statement.
Ford’s stock price targets are set by analysts.
The consensus among Wallstreet analysts is that the stock of Ford is now bullish. According to Market statistics, the average 12-month price estimate is $13.92 per share. This implies a 1.37 percent drop in price from the current trade price. However, the average aim for targets released in the last quarter is $15.16, implying a 2.5 percent upside. This indicates a recent shift in “smart money” mentality, which is encouraging for investors. Here are some recent price target projections from larger financial institutions’ analysts:
6/29/2021 – UBS Group analyst Patrick Hummel raised the firm’s 12-month price objective to $16 a share while keeping a Neutral rating.
6/22/2021 – Barclays With an outperform rating, analyst Brian Johnson raised the firm’s 12-month price objective to $17 per share.
6/4/2021 – JP Morgan With an Overweight rating, analyst Ryan Brinkman raised the company’s 12-month price target to $18 per share.
6/2/2021 – Bank of America Analyst John Murphy maintained a Buy recommendation on the stock while reiterating the company’s 12-month price target of $14.50 per share.
In comparison to older price targets, the most recent price targets provide more meaningful information into the current consensus among institutions. Analyst consensus just confirmed an optimistic inclination, with a 2.5 percent upside potential from the present market price.
Ford Motor Company’s Financial Outlook
Ford is predicted to outperform in the second quarter.
Ford Motor Company has maintained its sales momentum into 2021, with electric vehicle sales surpassing records in the first quarter. The Mustang Mach-E drove an uptick in North American sales, bringing the company’s first-quarter revenue to $36.2 billion. The robust EV sales increase is likely to continue in the second quarter, with Ford predicting that EBIT will beat forecasts. The business announced that bookings for the battery-electric F-150 Lightning pickup had increased to 100,000, with 20,000 for the all-electric E-Transit commercial van. On July 28, the company’s second-quarter earnings are likely to be revealed.
Revenue projections
Analysts predict that the corporation will produce $129.72 billion in revenue in the fiscal year 2021. Analysts predict an 11% increase in revenue in 2021 compared to the previous year. In 2022, revenue is predicted to increase even further, with an average prediction of $153.65 billion.
The global semiconductor scarcity, on the other hand, is causing uncertainty in a variety of businesses, according to Ford. The business stated that this will have an impact on Ford’s operating results in 2021 and that it will continue to offer updates on the issue. Due to the present semiconductor shortfall, Ford estimates adjusted EBIT to fall by $2.5 billion in 2021. In addition, due to the semiconductor shortage, Ford expects to lose around 1.1 million units of manufacturing in 2021.
Ford Motor Company’s future is electric vehicles.
Ford is making strategic investments in sectors such as electric vehicles, linked services, and self-driving cars. The CFO stated that they are sure that this investment would strengthen the balance sheet and fuel future growth. Furthermore, the company’s Q1 Sales report reaffirmed its belief in EV sales, with 25,980 EV vehicles sold in the quarter, a 74 percent increase. Furthermore, in the first quarter of 2021, the company was able to deliver 6,614 Mustang Mach-E vehicles.
“Our new electrified car selection is being well received by our customers. Ford’s overall electrified vehicle sales were up 74 percent year over year in the first quarter, thanks to the all-new fully electric Mustang Mach-E and the F-150 PowerBoost Hybrid.“
The bottom line is that Ford’s stock is expected to rise.
Overall, Ford Motor Company has fared admirably in recent months, as the majority of analysts agree. As we approach 2021, the high-end targets of $18 per share will certainly thrill investors. The corporation is confident in its capacity to establish Ford+, a new business that will compete with large-scale EV players like Tesla. However, the current semiconductor scarcity will have an impact on profitability in 2021, which investors should keep an eye on.
The preceding material is not intended to be construed as financial advice. Personal financial interests or investment decisions are not the responsibility of Youth Investment Group. Based on your own research and what you believe is best for you, you should make your own financial decisions. Similarly check about Zynga inc stock.