Ford received its second price target increase from Evercore ISI in less than a month, with the firm raising its target to $14 from $12 on Monday.
Evercore had lifted its target from $10 to $12 on November 24. The latest increase implies 3.9% upside based on Friday’s close of $13.47.
The Detroit automaker’s shares have climbed 36% over the past eleven months and touched a 1.5-year high of $13.99 last Tuesday before pulling back.
The stock has traded around $13 since late October.
EV Strategy Changes
The stock increase came as analysts reacted to the company’s announcement of a $19.5 billion impairment on its EV strategy shift, to be felt over the last quarter of 2025 and in the next two years.
The company expects its electric vehicle unit ‘Model e’ to be profitable by 2029, with annual improvements starting in 2026.
Ford also announced last week that it is raising its 2025 adjusted EBIT guidance to about $7 billion, citing “continued underlying business strength” and “cost improvement,” as focus shifts towards hybrid and internal combustion vehicles.
Fire at Aluminium Plant and Electric F-150 Halt
The Detroit automaker revised its 2025 financial outlook in October — after its temporarily suspension in May — to account for expected disruptions that came from a fire in a supplier plant in September.
In a research note published on October 8, McNally stated that Evercore estimated affected production of the F-150 Lightning could potentially reduce Ford‘s earnings by $500 million to $1 billion.
“We believe this is largely a Ford issue, at this time being, although we are continuing to check knock-on effects for Stellantis and Toyota as well,” the analyst wrote.
Novelis is also EV maker Lucid Motors‘ supplier.
Interim CEO Marc Winterhoff said over the weekend that he is “very confident” the company has resolved the supply chain issues that hampered production of its Gravity SUV.
After temporarily suspending production in October, the company announced last week that it is permanently ending production of the fully electric F-150, with CEO Jim Farley saying that “very high-end” electric vehicles “just weren’t selling.”
