Ford Motor reported second-quarter earnings per share (EPS) of $0.42, a substantial increase from $0.14 in the same period last year, which exceeded analysts' expectations. In response, Citigroup upgraded Ford's stock rating from neutral to buy and raised its price target to $20, suggesting a potential upside of 33% from the stock's closing price on Tuesday.
Analyst Michael Ward highlighted that Ford's strong earnings were driven by a favorable product mix and improved pricing strategies. He also increased his 2026 EPS estimate from $1.75 to $1.90, reflecting the positive momentum in Ford's operations, particularly with the anticipated acceleration in F-series production in the latter half of the year.
Ward noted that while Ford's energy business is still a few years from being monetized, it presents a future opportunity for higher-margin revenue. Despite Ward's optimistic outlook being somewhat of an outlier among analysts, who generally hold neutral or negative views on Ford, he believes that the company's momentum is shifting positively.
Early trading saw Ford's shares rise over 7%, contributing to its strong performance relative to the S&P 500 this year