Ford upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Mark Delaney upgraded Ford to Buy from Neutral with a price target of $13, up from $12. There is a margin opportunity driven by the company’s more profitable commercial business – Ford Pro, with mid teens EBIT margins – and growing software and services mix, and the management’s cost actions in internal combustion vehicles and EVs can help to offset industry headwinds, the analyst tells investors in a research note. The stock down 13% year to date driven by cyclical concerns and higher than expected warranty costs in the first half of the year, and it is now trading at just 5-times the firm’s expected next-12-month’s EPS estimate, which is at the lower-end of the historical range of 5- to 10-times, Goldman Sachs added.