JPMorgan Raises Ford's Price Target to $13 Amid Improved Production Outlook

JPMorgan has raised its price target for Ford (F) from $12 to $13, maintaining an Overweight rating. The upgrade is based on improved production outlook and a stronger consumer response. Ford's second-quarter results are expected to show better-than-expected production outcomes. Despite the positive outlook, Ford faces an estimated gross adverse EBIT impact of $2.5 billion and net adverse EBIT impact of $1.5 billion for full-year 2025 due to tariffs.

JPMorgan has upgraded its price target for Ford Motor Company (F) from $12 to $13, maintaining an Overweight rating. The upgrade is based on an improved production outlook and a stronger consumer response, according to the investment bank. Ford's second-quarter results are expected to show better-than-expected production outcomes [1].

Despite the positive outlook, Ford faces significant challenges due to tariffs. The company estimates a gross adverse EBIT impact of $2.5 billion and a net adverse EBIT impact of $1.5 billion for full-year 2025 due to tariffs [2]. These tariffs, including the recent 93.5% preliminary anti-dumping duties on Chinese graphite imports, could pose significant supply chain challenges and impact production costs [3].

The new tariffs aim to protect domestic producers from unfair pricing practices but may also lead to cost implications for U.S. automotive manufacturers who utilize these materials extensively. Ford, which relies on graphite for battery components, is among the companies affected.

Ford's first-quarter results showed a 7% decline in wholesales and a 5% decrease in revenue to $41 billion, partly due to planned downtime at several plants. However, the company delivered $1 billion in EBIT, exceeding expectations of roughly breakeven for the quarter, driven by cost improvements and strong net pricing in North America [2].

JPMorgan's upgrade reflects a positive view on Ford's ability to navigate these challenges and capitalize on improved production outcomes. The investment bank expects Ford's second-quarter results to be better than expected, which could further bolster its stock price.

References:
[1] https://www.nasdaq.com/articles/ford-expects-570-mln-expense-q2-related-field-service-action
[2] https://www.investing.com/news/earnings/trelleborg-q2-sales-fall-2-as-auto-demand-slows-profit-margin-improves-4139621
[3] https://www.gurufocus.com/news/2985637/ford-f-faces-new-challenges-amid-high-graphite-tariffs-f-stock-news?mobile=true