Deutsche Bank Reiterates Ford At 'Buy', Sees Positives In 2012
Monday, January 30, 2022 1:48 PM

Deutsche Bank (DB) reiterated its "Buy" rating and lifted its price target on Ford Motor Co. (NYSE:F) to $16 from $15, saying the company's 2011 results were actually much better than they appeared.

Rod Lache, an analyst at DB, said the reiteration is based on valuation and expected return of North America operating leverage in 2012.

"This should become apparent as soon as Q1 and Q2, and we believe that these results have potential to allay investors’ concerns," Lache wrote in a note. He initiated a 2013 EPS estimate of $1.60.

Ford's Q4 came in at $0.20 vs. DB estimate of $0.24. Pretax income of $724M was well below DB's $1.01 billion estimate. Global Volume/Mix (+$0.8 bn yoy) and pricing (+$1.0bn) performance was very strong, but was offset by cost inflation. "The continuance of this pattern has reinforced investors’ concerns about a potential peaking of margins. While we shared the St’s disappointment regarding F’s 4Q11, it is our view that the mkt’s longer term concerns are misplaced," Lache said.

The stock, which has been trading in the 52-week range between $9.05 and $17.88, is currently trading 0.74 percent higher at $12.30.