Ford Motor Company’s market capitalization surpassed $100 billion for the first time on Thursday, as the automaker’s shares hit a new 52-week high. The company’s stock rose as much as 5.7 percent to $25.87 on Thursday, reaching another 20-year high before ending at $25.02, up 2.3 percent. Its market capitalization has fallen to $99.99 billion.
Ford’s ambitions to increase production of electric vehicles, such as the Mustang Mach-E crossover and a forthcoming electric version of its best-selling F-150 pickup due out this spring, have propelled the increases. The activities are part of CEO Jim Farley’s Ford+ turnaround strategy, which he took over the helm in October 2020.
Ford is now worth more than its crosstown rival General Motors, which is valued at over $90 billion, as well as Rivian Automotive, which is valued at $72 billion and has struggled to maintain gains following a blockbuster IPO in November. Ford continues to lag behind Tesla, which has a market capitalization of almost $1 trillion.
According to an average of 22 analysts polled by FactSet, the automaker is rated overweight with a price target of $21.83 per share. However, not all Wall Street analysts are convinced of Ford’s comeback.
“The stock market’s attraction to the Ford EV story continues to take us by surprise,” Morgan Stanley analyst Adam Jonas told investors in a Thursday note called “Ford Market Cap Crosses $100bn: What’s In the Price?”
According to Morgan Stanley, Ford’s price target is $12 per share. According to Jonas, the stock’s bull case is $25 a share.
“Ford’s share price movement is impressive, and management deserves credit for changing the strategic narrative, triggering a re-rating,” Jonas said. “However, at this juncture, we believe the risks facing Ford and the sector are rising faster than the opportunity.”
Jonas quoted concerns entangling the auto industry’s historically cyclical nature returning, challenges in rising EV production and more competitive and appealing EVs penetrating the market against Ford.
