2024-07-08 08:45:21 ET
Summary
- Ford faces headwinds in lower volumes and pricing for ICE vehicles, as well as pressure on Model e going into q2’24.
- Ford Pro shows resilience with growth in revenue and services for contractors, potentially offsetting some of the declines in other segments.
- Despite challenges, Ford is focusing on reentering the EV space with more affordable models as battery technology advances.
Ford ( F ) is facing certain headwinds as we turn the page for q2’24 at the end of July going into the second half of the fiscal year. Management faces the challenge of lower volumes in ICE, a -2% pricing decline in ICE vehicles, and further pressure on Model e. One area of resilience that may offset some of the declines is Ford Pro, which provides roadside services to contractors and other labor-intensive professionals; Ford Pro may navigate the shift to electric fleets through its fleet management software, charging stations at depots, and other features that provide catered services to vehicles on the road. Given the pricing and volumes headwinds going into e2h24, I provide F shares a HOLD rating with a price target of $13.34/share at 8.73x eFY25 EV/aEBITDA....
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Ford May Find Strength In Pro As It Faces Macro Headwinds