Ford Motor Co. began the week with good news from Goldman Sachs Equity Research, with a stock recommendation from "neutral" to "buy" on Monday.
In addition, Goldman raised its 12-month price target for Ford from $ 9 to $ 12. The stock fell to a nine-year low this month, dropping to $ 8.19.  Key factors influencing the revised recommendation included the introduction of new models, notably the release of SUVs, and corporate restructuring.
"While we are still ex Given that earnings will go down in 2019 (earnings under pressure in North America), we believe next year will outweigh profits, combining an improved product cadence worldwide and cost improvements through strategic initiatives will prevail, "said a report by David Tamberrino, Goldman's Chartered Financial Analyst
In short, he expects 2019 to be lower than 2018, but profits will show in 2020.
"With investor sentiment still biased towards GM over GM, we believe that any additional announcements (ie plant closures and business decisions around regions / product lines that are below expectations) are likely to be positive."
Goldman said that Ford is behind its old product line in both the US and China Competitors were left behind ". Goldman Sachs also referred to Ford's announced plan to achieve $ 25.5 billion in material cost, product development, manufacturing and marketing efficiency.
Ford spokesman Brad Carroll said the company is indeed moving forward with a sense of urgency and taking proactive steps. We will continue to leverage our strengths, underperform products and regions, and selectively and intelligently dispose of them where we can not achieve adequate returns. We are confident that the market will continue to recognize our progress over time. "
On Monday, Marketwatch quoted its aggregated analyst recommendations for Ford: three" buy ", 18" hold "and" sell. "
Goldman Sachs noted skeptical investors point out the potential for" North America production. " Declines, a dividend cut, F-Series market share losses, repatriation of the mix-shift back to passenger cars and continued declines in China. "
"We see these risks as potential risks," Goldman Sachs said. "We're likely to see limited potential impact in the current environment."
Ford Motor The stock price rose 9.9 percent on October 25, one day after the release of the third quarter earnings report, which showed a $ 1 billion gain. In comparison to the same period of 2017, it lost 37 percent (19659006) "Ford is too big to fail, and although they have had some problems lately, there is no way Ford will not exist in five or ten years ", Ivan Drury, Senior Analyst for Edmunds, said Monday. "Whether it's a merger or just an in-house development, the company has a lot to offer, and Ford receives positive signals that generate a moral boost internally that needs urgent review, and layoffs continue the future."  Contact Phoebe Wall Howard: email@example.com or 313-222-6512. Follow her on Twitter @phoebesaid
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