Shares of Ford Motor Co. fell nearly 2% Thursday, pulling back from a 10-month closing high in the previous session, amid broad equity-market weakness and after the automaker said its second-quarter U.S. vehicle sales rose 11.2%.
Second-quarter U.S. truck sales increased 26.2%, with F-Series sales rising 34%, Ford
F,
said. Electric-vehicle sales continue to grow, with June EV sales up 35.5% and sales of the all-electric F-150 Lightning pickup truck up 119% from a year ago and 4.1% higher than the first quarter.
On Wednesday, General Motors Co. reported second-quarter U.S. sales that rose 19%. And earlier this week, Tesla Inc.
TSLA,
Rivian Automotive Inc.
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and other automakers reported sales data as well, lifting the sector.
Analysts at TPH raised their price target and 2023 estimates for Ford, saying that they are “increasingly constructive” on the outlook for the company given that consumer demand remains robust.
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The analysts raised their earnings before interest and taxes (EBIT) estimates to $3 billion for the second quarter and to $10.9 billion for the year, compared with their previous estimates of $2.2 billion for the quarter and $9.9 billion for 2023.
They raised their price target on the stock by $1 to $15 a share, just about where the stock was on Thursday.
“We’ve got less visibility into the cost side of the equation beyond commodities (tailwind more a 2024 story as hedges roll), though [Ford] continues to make substantial changes globally to the structure of its business,” the TPH analysts said.
“Given the latest wave of headcount reductions focused on >20% of the company’s workforce in China, we’ll continue to monitor for updates on strategic initiatives internationally and labor cultivation, alongside the heavy internal focus on improving material costs.”
Ford’s stock has rallied 29% this year, compared with gains of around 14% for the S&P 500
SPX,
Read also: Tesla’s EV charging standard is becoming widely adopted, in another boost for the stock
This story originally appeared on Marketwatch
