Jefferies Adjusts Ford's Price Target to $9, Reflecting Electric Vehicle Optimism
New York, Monday, 11 August 2025.
Jefferies has elevated its forecast for Ford’s stock to $9.00, highlighting confidence in the automaker’s electric vehicle strategies amid efforts to reduce losses in the segment.
Ford’s Optimistic Outlook Amidst Economic Challenges
Jefferies’ decision to raise Ford Motor Company’s price target from $8.00 to $9.00 on 11 August 2025 underscores a cautiously optimistic outlook, especially in its electric vehicle (EV) segment. Despite maintaining an ‘underperform’ rating, the adjustment reflects a significant belief in Ford’s potential to reverse its current challenges in the automotive market dominated by regulatory and tariff pressures [1]. The increased focus on reducing losses in the EV unit is central to this strategic optimism, particularly as Ford plans to unveil a new, affordable EV strategy later today in Kentucky [3].
Analysts’ Reactions and Strategic Insights
The industry analysts, including Jefferies’ Philippe Houchois, have pointed to several influencing factors for their predictions. Notably, Ford’s considerable aluminum exposure, subjected to a 50% tariff, impacts its economic positioning alongside counterparts like Stellantis and General Motors [2]. However, its commendable Corporate Average Fuel Economy (CAFE) performance, driven by high hybrid exposure, positions Ford as a frontrunner in meeting emission regulations [2]. As Ford aims to cut down on EV unit losses from 2026 onwards, it’s crucial to note its Q2 results where revenue increases came primarily from Europe, highlighting regional market dynamics [3].
Financial Metrics in Focus
In its recent financial performance, Ford’s estimated adjusted earnings before interest and taxes (EBIT) for 2025 rose 2% to $6.9 billion, aided by its improved Credit division results. Future projections paint an even more optimistic picture with a 12% increase in free cash flow forecasted to reach $2.7 billion, although these figures remain below company guidance [3]. The company’s upcoming investment and product strategies, especially its new EV models, are anticipated to aid in achieving a modest 5% margin target by 2026 [3].
Broader Market Responses
In the broader market context, Ford’s stock has seen varied reactions from different financial institutions. The Royal Bank of Canada, UBS Group, and Piper Sandler have also adjusted their price targets, reflecting varied strategic expectations [1]. While some view Ford’s endeavors with cautious optimism, others remain skeptical, as seen in DBS Bank’s recent downgrade. These diverse perspectives highlight the fluctuating nature of the automotive market, compounded by regulatory challenges and economic uncertainties [1].