Ford Motor Co.
F,
has a new bull on Wall Street, as Argus Research analyst Bill Selesky raised his rating Tuesday to buy from hold, citing expectations for stronger consumer spending. Selesky set his stock price target at $14, which matches the highest target of the 18 analysts surveyed by FactSet. “Our upgrade reflects our expectations for stronger consumer spending, helped by a new round of stimulus payments, low borrowing costs and saving rates that have reached all-time highs,” Selesky wrote in a note to clients. “We also expect consumer spending to benefit as more coronavirus vaccines are approved and distributed.” Of the 18 analysts surveyed by FactSet, there are now five with the equivalent of buy ratings, while 11 analysts are at hold and two are at sell. Selesky’s price target is 23.5% above the previous average target of $11.34. His upgrade comes after Ford reported last week a wider fourth-quarter loss and sales that missed expectations, but provided an upbeat first-quarter outlook and said it would double its investments in electric and autonomous vehicles. Ford’s stock, which slipped 0.1% in premarket trading, has rallied 41.0% over the past three months through Monday, while shares of rival General Motors Co.
GM,
have hiked up 46.0% and the S&P 500
SPX,
has gained 10.3%.