From Financial Modeling Prep: 2024-10-02 14:31:00

Goldman Sachs analysts upgraded Ford (NYSE:F) to a Buy, citing strong margin potential from its software and services business, Ford Pro. They expect software and physical services to make up 20% of Ford Pro’s EBIT by 2026, with paid software subscriptions growing at 35-40% annually. Ford aims for $1 billion in software revenue by 2025.

Goldman highlighted Ford’s cost-cutting efforts in ICE and EVs to counter industry challenges. Despite a 13% drop in shares year-to-date, they see a 23% upside to a new price target of $13. Ford’s stock is trading at 5x NTM EPS estimates, at the lower end of its historical valuation range.



Read more at Financial Modeling Prep:: Ford Earns an Upgrade at Goldman Sachs