On Monday, Bernstein SocGen Group adjusted its stance on Ford stock (NYSE:F), increasing the price target to $8.30 from the previous $7.00, while continuing to recommend an Underperform rating for the automaker. The stock, currently trading at $10.36 with a market capitalization of $41.2 billion, has shown a 9.64% gain year-to-date despite significant market volatility. The firm’s analyst, Daniel Roeska, cited a strong first half of the year as the basis for optimism but warned of potential challenges in the latter half of 2025. Roeska noted that Ford’s positive performance in the first quarter of 2025 and the likelihood of continued strength in the second quarter are promising signs. However, he cautioned that production cuts and tariff headwinds are indicators that Ford might be preparing for a weaker second half of the year.
The analysis by Bernstein suggests that while Ford is facing market challenges, the company has several strategies to navigate the uncertainty ahead. Roeska mentioned that Ford’s efforts to mitigate tariff impacts, maintain discipline in battery electric vehicle (BEV) production, and the strong performance of Ford Credit could provide the company with options to manage the forthcoming market volatility. According to InvestingPro data, Ford maintains a substantial 7.24% dividend yield and has consistently paid dividends for 14 consecutive years, providing some stability for investors during uncertain times.
In light of these considerations, Bernstein has revised its 2026 earnings per share (EPS) forecast for Ford, lowering it by 5.8% to $1.66. The firm has applied a multiple of 5x to this forecast, which is one turn higher than the previous multiple, reflecting a less severe impact from tariffs in 2025 than initially expected. Currently, Ford trades at a P/E ratio of 8.25x, suggesting a relatively modest valuation compared to its peers. InvestingPro analysis indicates that Ford is currently trading slightly above its calculated Fair Value. This adjustment underpins the new target price of $8.30 for Ford stock.
Despite the upward revision in the price target, Bernstein’s analysis suggests caution, with an expectation of potential weakness in the second half of 2025. Consequently, the Underperform rating on Ford stock has been maintained, signaling that the firm believes the stock might not keep pace with the broader market or its sector peers in the near term. For deeper insights into Ford’s valuation and future prospects, InvestingPro subscribers can access comprehensive analysis, including 13 additional ProTips and a detailed Pro Research Report that transforms complex Wall Street data into actionable intelligence.
In other recent news, Ford Motor Company has announced the appointment of Kyle Crockett as its new Chief Accounting Officer, effective shortly after the filing of its second-quarter financial report. This leadership change is part of Ford’s efforts to refine its financial operations and strengthen its leadership team. Meanwhile, employees at Ford’s Cologne production facilities in Germany are set to strike, though the specific reasons and potential impact on production remain unclear. Additionally, Ford has raised prices on three of its Mexico-produced models, including the Mustang Mach-E, Maverick pickup, and Bronco Sport, in response to U.S. tariffs. This price adjustment marks Ford as one of the first major automakers to react to the new tariffs.
In analyst news, Bernstein has maintained its Underperform rating on Ford stock, with a price target of $7.00. The firm noted concerns over potential tariff-related costs, which could reduce earnings before interest and taxes (EBIT) significantly. Ford has also withdrawn its full-year financial guidance due to the uncertainty caused by tariffs, although it has affirmed a regular dividend payment for the second quarter. These developments highlight the challenges Ford faces amid economic uncertainties and tariff impacts.
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