Ford Shares Rise As Analyst Sees Over 30% Upside To Stock Amid EV Pullback Strategy

Ford is positioned to capitalize on the significant shift in the regulatory backdrop under the current administration, which should enable it to shift focus to its most margin-accretive trucks and SUVs, Bank of America told investors.

• BofA on Wednesday reinstated coverage of automaker Ford with a $17 price target.
• Ford on Wednesday reported a 5.5% drop in vehicle sales in the U.S. in February, owing to a steep 71% dive in EV sales, particularly its F-150 Lightning pickup truck.
• The automaker now expects to incur special charges of $7 billion in 2026 and 2027 related to its updated EV strategy.

Shares of Ford Motor Co. (F) rose 2% on Wednesday after Bank of America initiated coverage of the company with a ‘Buy’ rating amidst the company’s pullback on electric vehicles.

Bank of America reinstated coverage of automaker Ford with a $17 price target. The new price target represents a potential upside of about 34% from the stock’s closing price on Tuesday.

Analyst Take

Ford is positioned to capitalize on the significant shift in the regulatory backdrop under the current administration, which should enable it to shift focus to its most margin-accretive trucks and SUVs, BofA told investors.

As the EV segment losses abate, and the company's high-margin commercial business stabilizes, the firm expects Ford to make progress toward its 8% earnings before interest and taxes (EBIT) margin guide from 4.8% in 2026, the analyst added.

Ford February Sales

Separately, Ford on Wednesday reported a 5.5% drop in vehicle sales in the U.S. in February, owing to a steep 71% dive in EV sales, particularly its F-150 Lightning pickup truck.

The company said that it sold 149,962 vehicles in the U.S. during the month, including 83,067 trucks and 62,582 SUVs. The F-series continued to be the company’s best-selling vehicle, though sales fell 16.2%. Among SUVs, the Explorer was the brand’s best-seller with 20,100 units sold, marking a growth of about 33.4% year-over-year.

Ford’s Lincoln brand, meanwhile, sold 7,578 vehicles, 12.2% higher year-over-year.

EV Pullback Strategy

Dearborn-based Ford said in December that it expects to incur $19.5 billion in EV-related charges after it killed several EV models to stem losses from the segment.

“Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs and regulatory changes,” the company said.

The automaker now expects to incur special charges of $7 billion in 2026 and 2027 related to its updated EV strategy, which involves a pullback on several larger EV models and a pivot into more affordable models.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around F stock fell from ‘bullish’ to ‘neutral’ territory over the past 24 hours, while message volume remained at ‘normal’ levels.

F stock has gained 42% over the past 12 months.

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