By Christiana Sciaudone
Investing.com -- Ford Motor Company (NYSE:F) jumped almost 8% on a rating bump and analyst price target hikes after its investor day.
RBC Capital Markets bumped shares to a buy-equivalent from a neutral-equivalent after the company announced a turnaround plan calling for investment of more than $30 billion in electric vehicles over the next four years. Ford is aiming to have electric vehicles represent 40% of sales by 2030.
Analyst Joseph Spak said the plan addressed concerns about the company’s pivot to electric vehicles, CNBC reported. “Bottom-line, we feel much better about the more cohesive strategy as Ford is focusing on their strengths," Spak said. "Ford still needs to execute, but the upside opportunity is clearer to us."
Shares of the carmaker have rallied almost 200% since the pandemic hit last year. While the rally has been strong, it pales in comparison to Tesla (NASDAQ:TSLA), which is up some 340% in that time.
Spak increased the price target to $17 from $4, alongside Wells Fargo (NYSE:WFC). Deutsche Bank (DE:DBKGn) bumped the price target to $16, according to StreetInsider.
A new suite of products called "Ford Pro" should help the company strengthen its already solid position in work trucks and increase profitability, Spak said.
Ford is setting up for significant upside in the long-term, said Matt Maley, chief market strategist at Miller Tabak, in an interview with CNBC on Wednesday.