Tuesday, October 20, 2009
Barclays Boosts Rating for Ford
Posted by Mary Clare McGraw
A Barclays Capital analyst on Tuesday upgraded Ford Motor Co. to "Equal Weight" from "Underweight," citing expectations that the automaker's third-quarter results will beat Wall Street predictions.
Brian Johnson also boosted his price target for the Dearborn, Mich., company by $1 to $8.
Johnson said Ford continues to benefit from higher new and used car pricing, which should increase the company's North America and Ford Motor Credit third-quarter results by 12 cents per share over the investment bank's previous estimates.
In addition, while Ford's European results were probably hurt by pound and euro exchange rates, the company should also benefit from strong demand in Brazil where it is a large player, he said.
In light of those factors, Johnson revised his third-quarter earnings prediction to a loss of 7 cents per share from a loss of 16 cents per share. Analysts, on average, expect a loss of 16 cents per share, according to a surveyed by Thomson Reuters.
In midday trading, Ford shares rose 14 cents to $7.71.