By Michael Elkins
CFRA reiterated a Buy rating and $16.00 price target on Ford Motor Company (NYSE:F) after the American automaker reported a 10.7% Y/Y increase in 1Q U.S. auto sales. CFRA's adjusted EPS estimates are unchanged.
CFRA analysts wrote in a note, "Ford's U.S. sales are off to a strong start in '23, which we think reflects the momentum of its vehicle portfolio from models such as the Bronco, which continue to take market share from Jeep, and the ongoing ramp-up of the F-150 Lightning electric pickup. Ford was one of the first to bring an electric pickup truck to market and we think will reap the benefits as evidenced by its strong reservation count. We also view Ford's EV growth strategy as the most prudent of the traditional automakers. While Ford's Q1 EV sales rose 41%, F-150 Lightning deliveries fell 37% from the Q4 total due to a production halt, underscoring risks automakers face as they attempt to execute aggressive EV production plans."
Ford's Kansas City Assembly Plant will add a third crew in April to increase production of Ford Pro's best-selling Transit and E-Transit vans. The company is also increasing production at manufacturing plants across North America to meet strong customer demand.
Shares of F are down 0.91% in mid-day trading on Tuesday.