Ford Motor Co. CEO Jim Farley addresses a information convention on the Rouge Advanced on September 17, 2020 in Dearborn, Michigan.
Rebecca Cook dinner | Reuters
DETROIT – The market worth of Ford Motor surpassed $100 billion for the primary time as shares of the automaker hit a brand new 52-week excessive on Thursday.
Shares of the corporate rose a whopping 5.7% Thursday to $25.87, hitting one other 20-year excessive earlier than closing at $25.02 a share, up 2.3%. Its market worth fell to $99.99 billion.
The beneficial properties had been fueled by Ford’s plans to ramp up manufacturing of electrical automobiles, together with the Mustang Mach-E crossover and a forthcoming electrical model of its best-selling F-150 pickup, because of launch this spring. The trouble is a part of a Ford+ turnaround plan led by CEO Jim Farley, who took the helm in October 2020.
Ford is now price greater than crosstown rival Basic Motors at round $90 billion and electrical automobile start-up Rivian Automotive at $72 billion, which didn’t flip a revenue after a blockbuster IPO in November. Ford continues to lag considerably behind Tesla, which has a market cap of greater than $1 trillion.
The automaker is obese with a value goal of $21.83 per share, in line with a mean of twenty-two analysts compiled by FactSet. However not all Wall Avenue analysts did not absolutely purchase into Ford’s turnaround.
“The inventory market’s pull to Ford EV historical past by no means ceases to amaze us,” Morgan Stanley analyst Adam Jonas instructed traders Thursday in a notice titled “Ford Market Cap Crosses $100 Billion: What’s within the Worth.” ?
Morgan Stanley’s value goal for Ford is $12 per share. In response to Jonas, the bull case for the inventory is $25 per share.
“Ford’s inventory value motion is spectacular and administration deserves credit score for altering the strategic narrative and sparking a reassessment,” Jonas mentioned. “At this level, nonetheless, we consider the dangers dealing with Ford and the sector are rising sooner than the alternatives.”
Jonas cited issues concerning the return of the auto business’s traditionally cyclical nature, challenges in scaling EV manufacturing, and extra aggressive and engaging EVs coming into the market in opposition to Ford.
– CNBC’s Michael Bloom contributed to this report.