TD Cowen Maintains Hold Rating on Ford Stock, $10 Price Target After Q1 Earnings
Investing.com – After Ford Motor Company (NYSE: F) reported better-than-expected first-quarter results, TD Cowen has decided to maintain its Hold rating on the stock and a $10.00 price target, despite the automaker suspending its 2025 financial guidance due to tariff risks.
In its recent report, Ford reported adjusted EBIT of $1.0 billion – beating the $200 million forecast – thanks to cost optimization and warranty savings. Revenue of $41 billion beat the $38.15 billion forecast, though down slightly by 5% year-over-year. Earnings per share (EPS) of $0.14 beat the $0.02 loss forecast. These factors indicate that Ford is making significant progress in managing costs and launching new products, particularly in the Model E segment.
That said, Ford has announced it is withdrawing its 2025 financial guidance due to uncertainties around global tariffs – a factor that could have a cumulative EBIT impact of up to $2.5 billion. However, TD Cowen sees this impact as less severe than its initial model and remains neutral on Ford shares.
TD Cowen says the $10 price target is supported by an increase in the valuation multiple – the target P/E has increased from 6.0x to 7.0x and EV/EBITDA from 5.2x to 6.2x – reflecting Ford’s improved operating performance. Ford is currently valued at around $42 billion, trading at an attractive P/E of 7.1x and a high dividend yield of 7.4%.
Analysts' Diverse Views
Other analysts have also reacted to the results:
JPMorgan maintains an Overweight rating, citing strong financial results and resilience to tariff risks.
Deutsche Bank raises its price target to $9 from $7, maintaining a Hold rating, citing Ford's responsiveness to a volatile environment.
Bank of America maintains a Buy rating with a $14 price target, although it revised Ford's credit rating due to concerns about tariff costs.
Ford has annual revenue of about $185 billion and EBITDA of $11.1 billion, reflecting its strong operating performance. According to data from InvestingPro, Ford has a "Good Financial Health" score, with 12 points for advanced subscribers.
What's the future for Ford stock?
While it’s unclear whether Ford’s stock will continue to rise or correct in the short term, its Q1 performance and consistent cost strategy point to a positive medium-term outlook. TD Cowen’s unchanged rating and price target reflect a cautious but steady sentiment from institutional investors.
F: Bull or Bear in 2025?
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