Ford (F) - Get Report shares traded higher on Thursday after the car company looking to take on Tesla (TSLA) - Get Report in electrifying its fleet sooner rather than later received an upgrade from analysts at RBC Capital, who believe the stock is “still not overly expensive.”
Shares of Ford were up more than 5% after RBC analyst Joseph Spak upgraded the stock to outperform from sector perform on what he sees as compelling evidence the carmaker can and will achieve its financial targets.
Spak also raised his one-year price target to a Wall Street-high of $17 from $13.
“We have more confidence in financial targets, concerns over BEV strategy were addressed, numbers are likely moving higher, and the stock is still not overly expensive,” Spak wrote in a research following Ford’s Investor Day on Wednesday, where Ford executives outlined their long-term electrification plans and also provided an updated longer-term financial outlook.
Real Money's Stephen Guilfoyle noted in his own assessment of Ford’s Investor Day that the carmaker “is not afraid at all” to take on Tesla, General Motors (GM) - Get Report or Rivian, which has the backing of Amazon (AMZN) - Get Report, “… as all are headed to market in short order with electric trucks and vans of their own.”
“Ford says it will exceed Tesla in volume by July 2022. That's a year, gang,” Guilfoyle wrote. “Tesla's near-monopoly in the electric space had already been under pressure, but now it's truly over ... as in Kaput. From here it's going to be about quality and scale.”
For more on what Guilfoyle thinks about Ford and other stocks check out Real Money.
TheStreet founder and contributor Jim Cramer also is betting long on Ford, telling CNBC’s Scott Wapner earlier this month that he’s stuck with Ford for one reason: Ford CEO Jim Farley.
“As much as (GM CEO Mary) Barra has been a break with the past, caring passionately about the environment, while designing a line of cars that includes the ultra-cool GMC Hummer EV, I think Farley has done something simply incredible for Ford: He has decided to not lose money.
Added Cramer: "The firm has already released the Mustang Mach-E and it's profitable, and Ford now has plans to take both the Mustang coupe and convertible down "Electric Avenue" in the near-term future.
"If only there were an electric version of the coolest vehicle on the road, the F-150 pick-up. If only," he quipped.
At last check, shares of Ford were up 5.68% at $14.69.