Ford engine (NYSE: F) The stock price dipped below the double-digit figure after lower than expected second quarter results. The share price lost 9% of its value last month; the stock is still up 11% since the start of this year.
Market experts strongly believe in the future fundamentals of Ford Motors. Morgan Stanley, for example, raised the Ford stock price target to $ 12 with an overweight rating.
The MS analyst team said: “We view the FY19 expectations reset after Q2 results and a 3-month low in stocks as a buying opportunity. “
Analysts are showing confidence in Ford’s restructuring efforts as well as strategic actions such as the EV engagement and the partnership with Volkswagen.
Deutsche Bank analyst Emmanuel Rose said Ford’s restructuring actions could start to deliver results in the years to come. However, traders and investors aggressively researched the visible impact of restructuring actions on earnings and cash flow, before giving equity credit for it.
Ford Motors generated second quarter EBIT of $ 1.7 billion in North America, down from $ 1.8 billion last year.
The company said it was working on improving its operational performance and product line to improve profitability. They are particularly focused on the automotive business. The automotive business generated EBIT of $ 1.4 billion in the last quarter, up 19% year-on-year.
“We are building a compelling product portfolio for our clients, executing our global redesign and fitness initiatives, and investing in mobility opportunities to improve our trajectory for growth, free cash flow, profitability and return on capital. ,Said Tim Stone, the company’s chief financial officer.
The company expects to generate annual EBIT of between $ 7.07 and $ 7.5 billion, compared to analysts’ estimate of $ 7.08 billion. The forecast for full-year EPS is between $ 1.20 and $ 1.35. Ford’s share price is expected to benefit from the support of improving financial figures and restructuring actions. The bullish momentum is also correlated with investor sentiment about the industry environment.