JPMorgan analyst Ryan Brinkman hiked his price target on Ford Motor’s shares by $2, to $18 per share -- a Wall Street-high. Brinkman held his 'overweight' rating on the automaker.
The analyst cited an improving price mix, an easing of the global shortage in semiconductor supplies, and stable labor costs.
"Ford may not see the same degree of improvement in semiconductor availability in 2Q as GM but we believe it may see some, including after it was reported earlier this week that a fire-damaged semiconductor plant in Japan to which it is disproportionately exposed has nearly returned to full capacity," Brinkman noted.
According to Brinkman, Ford may also see tailwinds from the continued strong pricing environment, given the analyst’s estimate that the company’s management may have been more cautious at the time of 1Q earnings than was GM’s in flowing “extremely strong” 1Q pricing trends through the full year.