JPMorgan Keeps Ford Overweight Despite 30% Slide
Ford shares are down 30% from their May 29 high, while JPMorgan lowered its target to $16 but maintained an Overweight rating and sees 33% upside. The analyst expects a decent third quarter but a cautious initial view of 2027, so results may not move the stock much. The $16 target implies about 9x forward earnings, above Ford's five-year average of 7.8x.
JPMorgan analyst Rajat Gupta lowered Ford’s price target by $1 to $16 on Oct. 12, keeping an Overweight rating. The firm forecasts third-quarter EBIT of $2.5 billion and EPS of $0.43, modestly above consensus of $2.4 billion and $0.41.
Ford’s U.S. third-quarter sales fell 6.6% as it ended the Escape and Lincoln Corsair. Reuters reported Oct. 1 that experts expected the Detroit Three to lose U.S. share to Asian rivals, partly because of higher gasoline prices linked to the Iran war.
Ford’s stock moves may affect investors, employees, suppliers, and communities tied to its plants, while a lower valuation could influence borrowing costs or investment plans. A cautious 2027 outlook may shape hiring and production decisions, though it is only one analyst’s view. Consumers could see effects through vehicle pricing and availability if gas prices or competition pressure Detroit automakers.