Ford’s U.S. Sales Rise 1% In 1Q On EV Strength

Ford Motor announced that it sold 521,334 vehicles in the U.S. during the first quarter, reflecting growth of 1% year-over-year. Meanwhile, Ford’s U.S. retail sales spiked 23.1% during 1Q.

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Ford’s (F) truck sales grew 5.1%, while SUV sales jumped 14.3%. However, car sales declined 56.7% year-over-year, during the quarter. Ford’s EV [electric vehicles] sales increased 74.1% year-over-year, with 25,980 vehicles sold, supported by the fully electric Mustang Mach-E and F-150 PowerBoost Hybrid.

Andrew Frick, vice president of Ford Sales U.S. and Canada said, “Our customers are really embracing our new electrified vehicle lineup.” He added, “Our all-new Bronco Sport posted record monthly sales in March and helped power Ford Brand SUVs to their best start in 20 years.” (See Ford Motor stock analysis on TipRanks)

On March 29, Jefferies analyst Philippe Houchois raised the stock’s price target to $16 (31.5% upside potential) from $14, as the analyst believes that automakers should re-rate their valuation multiples higher amid the electric vehicle transition. Houchois maintained a Buy rating on the stock.

Overall, consensus among analysts is a Moderate Buy based on 6 Buys, 5 Holds and 1 Sell. The average analyst price target of $12.91 implies upside potential of about 6.1% to current levels. Shares have gained about 152% in one year.