Ford Motor's Stock Could Rally Over 30%, Jefferies Says

According to a note from Jefferies, Ford Motor is poised for significant gains in the future. Analyst Philippe Houchois upgraded the company's shares from hold to buy and increased the price target to $16, implying a 32% upside from Friday's closing price. The firm's confidence in Ford's potential stems from the automaker's recent investor event, which showcased a solid plan and management that can help narrow the gap with its competitors.

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Houchois highlighted Ford's strategy of leveraging its strengths and focusing on core competencies, emphasizing a "back-to-basics" approach that resonates with investors. He commended the company's cohesive team, comprised of both internal and external talent, including CEO Jim Farley's openness to new business models and inspiration from Tesla when relevant.

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The analyst believes that Ford's roadmap for improvement across its divisions, namely Ford Blue, Model e, and Ford Pro, enables the company to achieve more with fewer resources. In a bullish scenario, Houchois suggests that successful execution of these efforts could lead to a surge in Ford's shares of up to 107%.

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Furthermore, Houchois finds Ford's anticipated 10% margins guidance by 2026, compared to consensus projections of 6%, to be an attractive proposition for investors. In premarket trading, Ford's shares were up 2.8% on Tuesday, with a year-to-date rise of approximately 4%.

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