Ford Motor Company delivered better-than-expected earnings after market hours on Tuesday, prompting Citigroup to upgrade the automotive manufacturer’s stock rating on Wednesday. The financial institution elevated its recommendation from neutral to buy, while increasing its price target to $20, indicating potential upside of 33% from Tuesday’s closing price.
Analyst Michael Ward highlighted Ford’s strong first-half performance, profitable product mix, and enhanced pricing strategies as key drivers behind the improved outlook. He noted that Ford achieved second-quarter 2026 earnings per share of $0.42, compared to $0.14 in the prior year, and raised his full-year 2026 EPS estimate to $1.90 from $1.75 to account for the robust quarterly results and accelerated F-series production anticipated in the latter half of the year.
Looking ahead, Ward emphasized that ongoing improvements at Ford are positioning the company to pursue growth opportunities beyond traditional automotive operations. While he acknowledged that monetizing Ford’s energy business remains several years away, he views it as a potential source of higher-margin revenue generation. Ward’s buy recommendation stands out among his peers, as most analysts maintain neutral or bearish positions on Ford, according to LSEG data. However, he anticipates this sentiment may shift as momentum continues to build.
“We believe the momentum is turning,” Ward stated in his research note. He pointed to accelerating F-series production, reduced warranty expenses, improved aluminum supply chains, and stabilizing material costs as positive indicators for the second half of the year. Ford shares rose over 7% in early trading on Tuesday, extending their strong performance against the S&P 500 for the year.