Shares of major American automakers Ford (F, Financial), General Motors (GM), and Stellantis (STLA) saw a rise on Monday afternoon as President Trump hinted at potential measures to assist car companies. The administration is considering support for automakers shifting manufacturing from international locations, such as Canada and Mexico, back to the United States.
This potential aid comes in response to ongoing auto tariffs, which are expected to increase costs for consumers not only when buying new cars but also in terms of insurance and repairs. Although the tariffs might not raise repair costs as sharply as vehicle prices, they still present a significant burden for consumers. The tariffs have led some automakers to delay shipments and hold vehicles at U.S. ports to manage the impact.
Recently, Deutsche Bank downgraded General Motors to a Hold rating with a $43 price target, citing concerns over the company's prolonged structural uncertainties due to U.S. tariff policies. The bank also reduced Ford's price target to $7 from $9, keeping a Hold rating, as it anticipates substantial challenges for the auto industry amid these tariffs.
UBS also downgraded GM, pointing to the financial strain tariffs impose, estimating annual cost increases could reach $5 billion if left unaddressed. Additionally, Goldman Sachs and Bernstein shifted their stance on Ford, expressing concerns over higher costs due to tariffs and declining consumer confidence.
Despite these challenges, Ford and GM stocks gained around 4% each in Monday's trading, closing at $9.71 and $45.37, respectively, while Stellantis shares rose over 3% to $9.16.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Ford Motor Co (F, Financial) is $9.70 with a high estimate of $15.50 and a low estimate of $7.00. The average target implies an downside of 0.14% from the current price of $9.71. More detailed estimate data can be found on the Ford Motor Co (F) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Ford Motor Co's (F, Financial) average brokerage recommendation is currently 3.2, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ford Motor Co (F, Financial) in one year is $12.33, suggesting a upside of 26.98% from the current price of $9.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ford Motor Co (F) Summary page.
