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Why Ford Stock Is Rising Today

By John Rosevear – Updated Oct 12, 2020 at 10:25AM

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A Wall Street analyst expects strong earnings from the Blue Oval.

What happened

Shares of Ford Motor Company (F -1.70%) were moving higher on Monday morning, after a Wall Street analyst upgraded the stock in a bullish note.

As of 10:15 a.m. EDT, Ford's shares were up about 7.2% from Friday's closing price.

So what

In a new note on Monday morning, Benchmark analyst Michael Ward raised his rating on Ford's stock to buy, from hold, with a $10 price target.

Ward thinks Ford's third-quarter earnings will come in better than investors expect. Ford's production in North America was higher than expected in the quarter, he said, with minimal COVID-19-related disruptions, and metrics in the auto credit markets are improving. Taken together, they could drive Ford's adjusted profit higher than the current $0.13-per-share Wall Street consensus estimate. 

A 2021 Ford F-150 pickup truck is shown towing a boat trailer.

Benchmark's Michael Ward thinks Ford will move a lot of new F-150s as it works to replenish inventories. Image source: Ford Motor Company.

More broadly, Ward is bullish on Ford's new CEO, Jim Farley, and on the company's upcoming new-product blitz. Ford is in the midst of launching all-new versions of its F-150 pickup and Bronco SUV, both of which are expected to be high-margin products, with other new models due in the first half of 2021. 

Ford earned $0.34 per share in the third quarter of 2019. 

Now what

Auto investors won't have to wait too long to find out if Ward is right. Ford will report its third-quarter results after the market closes on Oct. 28. 

John Rosevear owns shares of Ford. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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