Ford Stock Is Rising After Getting a Big Upgrade at Goldman Sachs
Ford stock has struggled in recent months, but Goldman Sachs is upbeat about improving profitability. Here's what you need to know.
Ford Motor (F) stock is trading in positive territory Tuesday after Goldman Sachs upgraded the embattled automaker to Buy from Hold.
Goldman's upgrade of Ford is centered around the possibility of improving profitability, according to Barron's, particularly within its commercial business.
"We believe there is a margin opportunity driven by the company's more profitable commercial business," says Goldman Sachs analyst Mark Delaney. Ford's commercial business, Ford Pro, is its most profitable unit.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The analyst also provided positive commentary on Ford's growing software and services mix.
"The company is targeting $1 billion of software revenue in 2025, and for software and physical services to be 20% of Pro [operating profit] in 2026," Delaney said. "In addition, we believe cost actions – in internal combustion engines (ICE) and electric vehicles (EVs) – can help to offset industry headwinds."
Is Ford stock a buy, sell or hold?
Ford Motor shares down more than 26% since mid-July and Wall Street is on the sidelines when it comes to the consumer discretionary stock.
According to S&P Global Market Intelligence, the average analyst target price for F stock is $13.02, representing implied upside of over 20% to current levels. Meanwhile, the consensus recommendation is a Hold.
But like Goldman Sachs' Delaney, there are bulls to be found. Financial services firm BofA Securities, for instance, also has a Buy rating on the large-cap stock, along with a $20 price target.
"On August 21, Ford announced several changes to its product plans that should help improve the profitability and capital efficiency of its Core to Future transition," says BofA Securities analyst John Murphy. "Among the changes, Ford now plans to launch a new electric commercial van in 2026 and two new electric pickup trucks in 2027."
Murphy adds that Ford's initiatives include shelving plans "to build an electric three-row SUV, but instead will leverage its hybrid technology in the next three-row SUVs." He believes "these changes will position Ford to benefit from growing demand for EVs, while also focusing on areas in which it has a Core competitive advantage."
BofA's $20 price target is the highest on Wall Street and sits nearly 90% above where Ford is currently trading.
Related Content
- Ford Recalls More Than 90,000 Vehicles. Is Your Truck or SUV on the List?
- How the EV Tax Credit Works
- States That Won't Tax Your EV
-
How to save for college and retirement at the same timeSponsored Consider these steps to balance two of life’s most significant financial goals.
-
8 ways to potentially lower your taxesConsider these strategies to potentially reduce your taxes.
-
6 common tax mistakes for investors to avoidSponsored Watch for these common tax mistakes to avoid for investors, to help manage the impact of taxes on your portfolio.
-
A Portfolio Checklist If You're Planning to Retire in 2027Are you planning on retiring in 2027? This portfolio checklist will help put you on the right path.
-
How to Avoid Being Buried by the Tax Avalanche in Retirement: Tips From a Wealth AdviserAll that cash you have in tax-deferred accounts could launch you into a higher tax bracket when you start withdrawals. It's time to protect your income.
-
I'm a Financial Adviser: This Is the Real Secret to Retirement SuccessFor real retirement security, forget about chasing returns and focus instead on the things you can control: income, taxes, risk-taking and decision-making.
-
Is Your Retirement Plan Based on Social Security Fact or Fiction?One in two Americans don't know much about Social Security — and some are basing their retirement on mistaken beliefs. It's time to separate fact from fiction.
-
Are You Investing to Score Points or Make Money? Cautionary Tales From an Investment AdviserHave you become numb to risk? Is your brokerage app or website fueling your desire to trade? An investment adviser explains why it always pays to be cautious.
-
Are You Overlooking These 5 Investment Opportunities in 2026?As investors game-plan for the year ahead, these five areas of the equity markets deserve their attention.
-
Are Roth Conversions for Retirees Dead in 2026 Because of the New Tax Law?The OBBBA's permanent lower tax rates removed the urgency for Roth conversions. Retirees thinking of stopping or blindly continuing them should do this instead.
-
Worried About Retirement? 4 Tasks to Calm Your Nerves and Build Confidence, From a Retirement ProIf you're feeling shaky about your finances as you approach retirement, here are four tasks to complete that will help you focus and steady your nerves.
