Ford Motor Co last = 9.5 USD 1w: -0.5 (-5%)
% vs. spot / Price1M6M12MLT(2Y)LT(3Y)
Target Price (consensus)4.2%12.7%51.6% (14.3)--
Upside (Bull Case)4.5%13.6%55.1% (14.7)--
Downside (Bear Case)-2%-6%---
[Positive]

My positive view on the Company's stocks reflects my confidence in Ford's successful implementation of its strategy 'One Ford', in which the Company is going to sell off non-core businesses and brands. Driven by common goal, Ford's management, designers, engineers and all employees are concentrated on supporting and developing the core Ford brand. As a result, the Company's team will work effectively together more so than ever before and will accelerate the development of new products.

[Positive]

Ford's revenue is expected to grow, however major concerns are Asia and Europe. Ford sees help from new launches to meet these challenges. North America and FMCC (Ford Motor Credit Company) shows better-than-expected dynamic. However, the primary thing for investors is Ford's initiatives to improve its operating margin (that drop from >10% in 2015/2016 to 8,6% in 2017 largely due to commodities and structural costs, Engineering costs, etc.). I believe that this target is achievable as I see significant potential in improvements of (1) international sales (currently operating losses), (2) passenger cars and small crossovers losses in NA. Moreover, additional upside potential for Ford is pricing as ~60% of cars in NA priced below average.