Ford Motor Co. experienced a nearly 2% decline in its share price on Thursday, retracing from its 10-month closing high in the previous session. This drop was in line with the overall weakness observed in the equity market. The automaker also announced that its second-quarter U.S. vehicle sales had increased by 11.2%.
Truck sales in the second quarter saw a notable surge of 26.2%, with F-Series sales rising by 34%, according to Ford. The company’s electric vehicle (EV) sales continued to grow, with June seeing a 35.5% increase in EV sales. Furthermore, sales of the all-electric F-150 Lightning pickup truck rose by 119% compared to the previous year and were 4.1% higher than the first quarter.
General Motors Co. reported a 19% increase in its second-quarter U.S. sales, while Tesla Inc., Rivian Automotive Inc., and other automakers also released their sales data this week, which contributed to a positive sentiment in the sector.
Analysts at TPH raised their price target and/2023 estimates for Ford, expressing an increasingly positive outlook for the company based on strong consumer demand. The analysts adjusted their earnings before interest and taxes (EBIT) estimates to $3 billion for the second quarter and $10.9 billion for the year, compared to their previous projections of $2.2 billion for the quarter and $9.9 billion for/2023.
TPH also raised the price target for Ford’s stock to $15 per share, reflecting the current trading level. While the cost aspect beyond commodities remains less visible, the analysts acknowledged Ford’s ongoing efforts to make significant changes to its business structure globally. They noted recent headcount reductions in China and expressed their intention to monitor updates on strategic initiatives and labor cultivation, along with Ford’s focus on improving material costs.
Ford’s stock has demonstrated a year-to-date rally of 29%, outperforming the approximately 14% gains seen in the broader S&P 500 index.
