Ford Motor (F) climbed 1.5% on Friday to $14.62, lifted by investor reaction to the company’s ambitious sales target for its upcoming Fathom electric pickup truck.
Ford says it plans to sell more than 100,000 units of the Fathom in its first year on the market. The truck is priced at around $30,000, putting it in range for buyers looking to move away from gas or hybrid models.
If Ford hits that number, it would be the first EV maker outside of Tesla to sell over 100,000 units of a single model in one year. For context, General Motors sold around 170,000 EVs last year, but that was spread across its entire electric lineup.
The Fathom comes equipped with a large touchscreen, Ford’s BlueCruise hands-free driver-assist system, and Apple Maps integration.
There is one notable gap, though. Ford has not yet published a towing rating for the Fathom. That matters to buyers who currently use gas or hybrid trucks for hauling, and could limit how many of them are willing to make the switch.
The EV market in the U.S. is also under pressure following the removal of government incentives, which makes Ford’s 100,000-unit target a tough climb.
Ford posted Q2 earnings of $0.42 per share, beating the $0.33 analyst estimate by $0.09. Revenue came in at $48.30 billion, above the $47.24 billion consensus.
Revenue was still down 3.8% compared to the same period last year. The company had earned $0.37 per share in Q2 of last year.
Analysts expect Ford to post full-year EPS of $1.86.
Ford’s stock has gained 22.74% over the past year. The 50-day moving average sits at $14.09 and the 200-day at $13.52.
Wall Street is cautiously positive. JPMorgan raised its price target from $16 to $17 and rates the stock “overweight.” TD Cowen lifted its target from $13 to $15 with a “hold” rating. Royal Bank of Canada also moved its target from $13 to $15.
The overall analyst consensus is “Hold,” with an average price target of $15.68. A separate consensus from the past three months puts the average target at $15.88, implying roughly 9% upside from current levels.
Eight analysts rate Ford a Buy, ten have it at Hold, and one has a Sell.
Ford also paid a quarterly dividend of $0.15 on September 1, representing a $0.60 annualized payout and a yield of around 4.1%. Some investors have raised concerns about whether the dividend is sustainable given the company’s debt load and earnings pressure.
Ford is recalling approximately 148,663 Mustang vehicles from model years 2024 to 2026 due to wiring defects that could cut drive power and disable key vehicle functions.
On a more positive note, Ford is bidding on defense contracts, including a partnership with General Dynamics Land Systems and Ricardo for the U.K. Ministry of Defence’s £2 billion Light Mobility Vehicle program.
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