TLDR
- Piper Sandler upgraded the stock of Ford (NYSE:F) from Neutral to Overweight, setting a price target of $16, up from $11.
- The stock of Ford reached a 52-week high of $14.00, achieving a 51.5% return over the past year.
- This upgrade follows Ford’s strategic move away from unprofitable first-generation EVs towards a new platform that will be launched in 2027.
- Ford’s U.S. market share rose to 13.2% in 2025, with total sales increasing by 6% to 2.2 million vehicles.
- The company recalled 272,645 vehicles due to park function problems and canceled a $7.2 billion battery contract with LG Energy Solution.
On Thursday, Piper Sandler raised Ford’s stock rating from Neutral to Overweight. The firm also increased its price target from $11 to $16.
This upgrade comes as Ford is trading near its 52-week high of $14.00. Over the past year, the stock of Ford has climbed 51.5%.
Piper Sandler pointed to Ford’s recent shift in its electric vehicle strategy as the main reason for the upgrade. The analyst firm described this move as a “welcome development” for the automaker’s future profitability.
Ford is moving away from its first-generation EVs. These vehicles were incurring losses and not attracting a large number of buyers.
This decision doesn’t imply that Ford is completely abandoning electric vehicles. Instead, the company is preparing for a more intelligent approach.
Piper Sandler expressed confidence in Ford’s next-generation EV platform. This new platform is scheduled to be launched in 2027.
The upcoming platform will utilize manufacturing methods similar to those of Tesla and Chinese automakers. This shift is essential for Ford to compete in the modern EV market.
Between now and 2027, Piper Sandler anticipates that Ford will enhance its profit margins. The firm believes that reduced warranty costs and a better product mix will drive these improvements.
Strong Sales Performance
Recent sales data indicates strength across its product lineup. The company’s U.S. market share reached 13.2% in 2025, a 0.6 percentage point increase.
Total sales in 2025 reached 2,204,124 vehicles. This represents a 6% increase from the previous year.
The F-Series trucks continued to dominate. These trucks remained the best-selling in America for the 49th consecutive year.
F-Series sales reached 828,832 units in 2025. That’s an 8.3% year-over-year increase.
Recent Challenges
Despite strong sales, Ford faces some operational obstacles. The company is recalling 272,645 vehicles in the U.S.
The recall involves a potential loss of park function. This defect could cause vehicles to roll away unexpectedly.
The recall affects several electric and hybrid models. These include the F-150 Lightning BEV and Mustang Mach-E.
Ford also canceled a major battery supply contract with LG Energy Solution. The deal was worth approximately $7.2 billion.
The cancellation is due to Ford’s decision to halt production of certain EV models. This aligns with the company’s broader strategic shift away from first-generation electric vehicles.
Ford currently trades at a P/E ratio of 11.7 with a market cap of $55.46 billion. The stock offers a dividend yield of 5.46%, and the company has maintained dividend payments for 14 consecutive years.
