Unifor union National President Jerry Dias said on Tuesday that Ford Motor Co (F) planned to invest CAD 1.95 billion ($1.46 billion) in its Canadian facilities in Oakville and Windsor as part of an agreement with Canadian autoworkers.
According to Dias, the agreement covers a reorganization of the Oakville facility in order to manufacture 5 electric vehicle models during the 2025-2028 period. The first vehicle will probably leave the assembly line in 2025, Dias added.
Ford shares closed lower for a third consecutive trading session in New York on Tuesday. The stock went down 1.31% ($0.09) to $6.78, after touching an intraday low at $6.77, or a price level not seen since September 4th ($6.75).
Shares of Ford Motor Company have retreated 27.10% so far in 2020 compared with a 2.62% gain for the benchmark index, S&P 500 (SPX).
In 2019, Ford Motor Co’s stock went up 21.57%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.
Ontario Premier Doug Ford said yesterday that the Ontario government was in the midst of negotiations about how much it would contribute to Oakville plant’s electric vehicle production line. However, he did not disclose any concrete numbers.
According to reports by the Toronto Star and the Canadian Broadcasting Corp, Canada’s federal government and the Ontario government could invest up to CAD 500 million in the plant.
Analyst stock price forecast and recommendation
According to CNN Money, the 15 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $8.00, with a high estimate of $9.00 and a low estimate of $4.90. The median estimate represents a 17.99% upside compared to the closing price of $6.78 on September 22nd.
The same media also reported that at least 14 out of 18 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 3 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.