1 Wall Street Analyst Thinks Ford Stock Is Going to $13. Is It a Buy?

Core Viewpoint - Ford Motor Company is facing challenges with its electric vehicle strategy and quality issues, leading to a stock price decline of approximately 12.5% year to date, but analysts believe there are opportunities for improvement and recommend buying the stock [1] Group 1: Analyst Recommendations - Goldman Sachs analyst Mark Delaney upgraded Ford's stock rating to a buy and raised the price target to $13 per share, indicating over 20% potential upside from the current share price [2] - Delaney emphasizes the importance of Ford Pro, a segment focused on business customers, in driving financial improvements for the company [3] Group 2: Financial Performance - Ford's Pro segment reported a profit margin of 15% in the second quarter, significantly higher than the 4.4% margin from its traditional consumer business [3] - The company is also seeing growth in its software and physical services, which are high-margin areas expected to enhance overall financial results [3] Group 3: Future Outlook - Ford's CEO Jim Farley noted improvements in underlying quality, which investors should monitor, particularly regarding warranty costs [3] - If Ford can consistently reduce warranty costs, it is anticipated that the stock price will increase, as it is currently trading at about 5 times next year's projected earnings [3]