Stock Markets
Ford shares see price target hike on robust Q1 sales
On Wednesday, CFRA made adjustments to the financial outlook for Ford Motor Company (NYSE:), increasing the stock price target from $13.00 to $14.00 while keeping a Hold rating on the stock. The decision follows Ford’s announcement of first-quarter U.S. auto sales, which showed a 6.8% year-over-year increase with 508,083 units sold, surpassing expectations and outpacing the average U.S. sales growth of 5.5%.
The upward revision in the price target is anchored to a 2025 price-to-earnings ratio of 7.6 times, which reflects a discount compared to historical averages. Additionally, CFRA has adjusted its 2024 earnings per share (EPS) estimate for Ford to $1.85, up from $1.80, while maintaining the 2025 EPS forecast at $1.85.
Ford’s performance in the first quarter was particularly strong in the hybrid vehicle segment, where sales soared by 42% year-over-year. This surge was led by the Maverick hybrid, which saw an impressive 77% increase in sales. Electric vehicle (EV) sales for Ford also showed significant growth, with an 86% year-over-year rise to 20,223 units.
The automaker’s sales growth in the U.S. stood out even more when compared to its main competitor, General Motors (NYSE:), which experienced a 1.5% decline in volumes over the same period. Still, CFRA pointed out potential headwinds for Ford and its Detroit peers, noting that the upcoming comparison periods would be more challenging and labor costs are expected to rise due to the new United Auto Workers (UAW) labor contract.
Despite the positive sales figures, CFRA cautions that the growing inventories could lead to sustained pressure on new vehicle prices and an uptick in incentives. The Hold rating on Ford’s shares is maintained by CFRA due to considerations of valuation.
InvestingPro Insights
Following CFRA’s recent update on Ford Motor Company’s financial outlook, InvestingPro data provides additional insights into the company’s current market position. With a market capitalization of $54.34 billion and a trailing twelve months price-to-earnings (P/E) ratio adjusted for Q4 2023 at 8.78, Ford shows signs of being valued attractively compared to the industry average.
The company’s revenue growth for the last twelve months as of Q4 2023 stands at 11.47%, indicating a solid performance in sales.
InvestingPro Tips highlight that Ford pays a significant dividend to shareholders, with a current yield of 5.87%, and has maintained dividend payments for 13 consecutive years, showcasing a commitment to returning value to investors. Moreover, the company is recognized as a prominent player in the Automobiles industry and has delivered a strong return over the last three months, with a total return of 16.47%.
For readers looking to delve deeper into Ford’s financials and gain more strategic insights, InvestingPro offers numerous additional tips. Utilize coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover how these insights can help inform your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
(Reuters) -Private equity firm Insight Partners is on the brink of closing a new $10 billion-plus fund, roughly half the amount originally targeted, the Financial Times reported on Sunday, citing five people with knowledge of its plans.
Insight will not formally close its 13th fund until early next year, the report said, adding that the final figure may be closer to $12 billion.
Insight Partners declined to comment on the report.
The report said Insight is using a private equity-style structure to sell more than $1 billion worth of stakes in start-ups and to free up cash to return to investors.
One of the start-ups is Israeli cybersecurity firm Wiz, which had called off a $23 billion deal with Google parent Alphabet (NASDAQ:) in July, the report said.
New York-based Insight raised $20 billion for its 12th flagship fund in 2022, aiming to ramp up investments in software and technology companies.
JERUSALEM (Reuters) -Prime Minister Benjamin Netanyahu said Israel would inflict a “heavy price” on the Iran-aligned Houthis who control northern Yemen, after they reached central Israel with a missile on Sunday for the first time.
Houthi military spokesman Yahya Sarea said the group struck with a new hypersonic ballistic missile that travelled 2,040 km (1270 miles) in just 11 1/2 minutes.
After initially saying the missile had fallen in an open area, Israel’s military later said it had probably fragmented in the air, and that pieces of interceptors had landed in fields and near a railway station. Nobody was reported hurt.
Air raid sirens had sounded in Tel Aviv and across central Israel moments before the impact at around 6:35 a.m. local time (0335 GMT), sending residents running for shelter. Loud booms were heard.
Reuters saw smoke billowing in an open field in central Israel.
At a weekly cabinet meeting, Netanyahu said the Houthis should have known that Israel would exact a “heavy price” for attacks on Israel.
“Whoever needs a reminder of that is invited to visit the Hodeida port,” Netanyahu said, referring to an Israeli retaliatory air strike against Yemen in July for a Houthi drone that hit Tel Aviv.
The Houthis have fired missiles and drones at Israel repeatedly in what they say is solidarity with the Palestinians, since the Gaza war began with a Hamas attack on Israel in October.
The drone that hit Tel Aviv for the first time in July killed a man and wounded four people. Israeli air strikes in response on Houthi military targets near the port of Hodeidah killed six and wounded 80.
Previously, Houthi missiles have not penetrated deep into Israeli air space, with the only one reported to have hit Israeli territory falling in an open area near the Red Sea port of Eilat in March.
Israel should expect more strikes in the future “as we approach the first anniversary of the Oct. 7 operation, including responding to its aggression on the city of Hodeidah,” Sarea said.
The deputy head of the Houthi’s media office, Nasruddin Amer, said in a post on X on Sunday that the missile had reached Israel after “20 missiles failed to intercept” it, describing it as the “beginning”.
The Israeli military also said that 40 projectiles were fired towards Israel from Lebanon on Sunday and were either intercepted or landed in open areas.
“No injuries were reported,” the military said.
PARIS (Reuters) – Eight people have died trying to cross the Channel from France to England, French authorities said on Sunday, confirming earlier media reports.
This latest incident follows the deaths of 12 people earlier this month when their boat capsized in the Channel on its way to Britain and highlights the pressure on the British and French governments to find ways to tackle the boat crossings.
Jacques Billant, the Prefect of the Pas-de-Calais region, said that rescue crews were alerted that a boat with 59 people onboard was in difficulty in waters off the coast of Ambleteuse in the Pas-de-Calais area.
“A new drama took place around one in the morning and we deplore the death of eight people,” he told a news conference, adding that the other 51 onboard were now in the care of rescue and medical crews.
The dead were men from Eritrea, Sudan, Syria, Egypt, Iran and Afghanistan, he added.
The Channel is one of the world’s busiest shipping lanes and currents are strong, which makes crossing on small boats dangerous.
The latest incident brings to 46 the number of people who have died trying to cross the Channel from France since the start of the year, Billant said.
On September 14 alone there were eight attempts to cross the Channel from France and some 200 migrants were rescued, he said.
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