Ford shares close higher on Monday, Benchmark upgrades stock to “Buy”, assigns price target of $10

Benchmark was reported to have raised its rating on Ford Motor Company (F) from “Hold” to “Buy”, citing momentum from new products into the next year.

The firm has also assigned a 12-month price target of $10 on the stock.

Ford shares closed higher for the seventh time in the past ten trading sessions in New York on Monday. It has also been the sharpest single-session gain since July 15th. The stock went up 5.79% ($0.42) to $7.67, after touching an intraday high at $7.86, or a price level not seen since February 21st ($8.03).

Shares of Ford Motor Company have retreated 17.53% so far in 2020 compared with a 9.39% 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.

“In our view, a new management team and better than expected third quarter earnings provide a near-term catalyst for Ford. Momentum from new products and the need to replenish depleted inventories of full-sized pickup trucks should accelerate the momentum into 2021,” Benchmark analyst Michael Ward wrote in an investor note.

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 $10.00 and a low estimate of $4.90. The median estimate represents a 4.30% upside compared to the closing price of $7.67 on October 12th.

The same media also reported that at least 12 out of 17 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 4 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.