Ford gains after Citi turns bullish on consumer auto trends

Posted By: ndeeney

Cristi Croitoru

Ford Motor (NYSE:F) moved higher in premarket action on Monday after Citi upgraded the auto stock to a Buy rating from Neutral after seeing favorable results from a recent consumer survey.

Citi analyst Itay Michaeli issued a broad positive call on U.S. auto based on demand trends and data showing improved wallet share. That meant Ford’s (F) risk-reward profile looked more attractive with consumers resilient. “We see an opportunity for improved sentiment towards our $16 price target, which is still derived on what we’d consider prudent/conservative multiples,” wrote Michaeli.

The Detroit automaker reported U.S. sales growth of 10.7% year-over-year for May to 170,933 units, driven by strong demand for models Ford F-150 and E-Series. F-Series pickups sales jumped 42.7% Y/Y to 70,566 units, including 1,707 units of its electric F-150 Lightning. E-Series sales grew 135.5% Y/Y to 2,732 units. Truck sales totaled 98,168 units, up 31.6% Y/Y whereas SUV sales dipped 9.7% Y/Y to 69,206 units.

Shares of Ford (F) rose 2.55% in premarket trading to $12.71 on Monday. The 52-week trading range is $10.10 to $15.88.

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