Ford’s Newest Bull Citi Sees Stock Rally Gaining Momentum

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessFord's Newest Bull Citi Sees Stock Rally Gaining MomentumFord Motor Co.’s stock rally has a lot more room to run, according to Citi analyst Michael Ward.Author of the article:Jordan Fitzgerald and Norah Rami You can save this article by registering for free here. Or sign-in if you have an account.p0uow88gi35k6kz64)0tazqr_media_dl_2.png Bloomberg(Bloomberg) — Ford Motor Co.’s stock rally has a lot more room to run, according to Citi analyst Michael Ward.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountShares of the auto manufacturer have climbed 13% so far this year on expectations that its new energy storage business can capture a slice of booming AI-related power demand. The gain has outpaced the broader S&P 500 Index’s 8.7% advance in 2026.The stock got a lift Wednesday from second-quarter results that topped expectations and a rosier profit outlook for this year. Ford’s balance sheet received a boost this past quarter from resilient demand for its classic pickup trucks and sport-utility vehicles. Analysts’ profit estimates for 2027 are 23% higher than where they were just a year ago.Strength in Ford’s core business has better positioned the Dearborn, Mich.-based company to invest in higher growth opportunities like energy storage and subscription services, according to Ward, who raised the price target from $19 to a Street-high of $20. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“The next two years will be among the most important in the history of Ford Motor Company,” Ward wrote in a note.Ward’s view, however, is contrary to the masses. Only 28% of sell-side analysts tracked by Bloomberg rate the stock a buy. Ward upgraded his own rating from hold to buy on Wednesday.Ford shares are also among the cheapest on the S&P 500, according to data compiled by Bloomberg. The valuation reflects a lack of enthusiasm for the old-economy industrial company. “Ford’s stock has been out of favor on the street,” Ward said. “We believe the momentum is turning.”Ward cited the acceleration in Ford’s F-series truck production, saying he expects a 28% increase in the second half that would boost earnings for both the Ford Pro commercial and Ford Blue engine segments.Moreover, he said that while the company’s “ability to monetize the energy business is still a few years away,” the initiative still highlights the opportunity to tap into a higher-margin business. Morgan Stanley’s Andrew Percoco is also bullish on Ford’s energy storage segment, adding there could be “substantial” earnings growth coming down the road if its universal electric vehicle business is successful. He increased his price target to $15 from $14 on Wednesday. “Their execution track record has definitely started to improve,” Percoco said. Ford, like many carmakers, has to navigate a murky macro environment. Tariffs, shifting US EV policies and increasing international competition from Chinese automakers has threatened the bottom line, according to RBC analyst Tom Narayan.Most analysts remain skeptical of Ford and instead favor peer General Motors Co. About 77% of GM sell-side analysts tracked by Bloomberg have a buy recommendation.GM is building off a stronger foundation, so it’s difficult to stack its strategy against Ford’s, according to Narayan. For now, Ford’s second-quarter performance proved that it could be on pace for a turnaround, particularly as EV losses improve, he adds.Ford management refrained from providing details on 2027 profits during the company’s earnings call Tuesday. The lack of clarity was one of the reasons that kept RBC from upgrading the stock from neutral to buy, though Narayan did raise his target price to $15 from $13.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.A turnaround is “not a done deal,” he said. “There’s initial signs of improvement, but it’s not a foregone conclusion that we’re going to get there.”Here are other notable analyst calls and commentary this week:Baird analyst Mircea Dobre downgraded shares of Caterpillar to neutral from outperform, citing a growing trend of state and local government actions targeting data centers.Reddit was initiated with an overweight rating at KeyBanc which called the company “a unique way to participate in AI growth.”Bank of America cut ExxonMobil to neutral from buy citing risks from the Iran war with potential downside for the stock if a ceasefire is reached.Albertsons was cut to neutral from buy at Citi in the wake of the grocer’s earnings report which saw it slash its annual profit guidance.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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