Ford Hauling Heavy EV Pipeline

Nowadays it seems like every auto manufacturer is getting into electric vehicles (EVs), and for good reason. Many analysts see an inevitable massive green wave washing over the industry, one which has already carried several EV producers to high valuations. At this point, the legacy OEMs like the Ford Motor Co. (F) have come to terms with the future and are making moves to adapt their pipelines.  (See Analyst Top Stocks on TipRanks)

Bullish on the Michigan-based car company is Ivan Feinseth of Tigress Financial Partners, who wrote that Ford has been heavily steering itself toward EV innovation. He added that “Ford will invest $30 billion over the next four years to develop and expand its EV production with the goal that 40% of global vehicle production will be fully electric by 2030.”

Feinseth rated the stock a Buy, and assigned a price target of $20 per share. This target indicates a possible 12-month upside of 24.69%.

The five-star analyst elaborated that Ford’s robust balance sheet and cash flow are providing ample operating leverage for it to take on these ambitious initiatives. Furthermore, he argued that the company’s strong brand, worldwide production footprint, and vast dealership network provide it with a competitive advantage.

Ford intends to expand this vertical production capability, and has plans a joint venture with South Korea’s SK Innovation to open new battery plants in Tennessee and Kentucky.

Beyond its “aggressive electrification investment initiative,” Ford is already seeing “tremendous success” from new models like the Bronco and Mustang Mach EV cars. The car company is capitalizing on digital services like Ford Pass and Lincoln Way, and is streamlining its customer experience by enhancing the purchasing process, financing options, and repair support.

On TipRanks, F has an analyst rating consensus of Moderate Buy, based on 6 Buy and 3 Hold ratings, and 1 Sell rating. The average Ford Motor Co. price target is $16.43, suggesting a potential 12-month upside of 2.43%. F closed trading Wednesday up 4.02% and at a price of $16.04 per share.

Disclosure: At the time of publication, Brock Ladenheim did not have a position in any of the securities mentioned in this article.

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