Ford Motor Co. shares got a boost in rating and a hike in price target from Morgan Stanley analysts.
Morgan Stanley analyst Adam Jonas raised his rating on the automaker to 'Overweight' from 'Equalweight" in a client note Tuesday. He also increased his target price on the stock by 205 to $12 per share. Jonas sees tailwinds to the company from its recent partnership with Volkswagen AG coupled with its electric vehicle plans.
Morgan Stanley’s revised outlook indicates that Ford’s free cash flow is expected to be in line with or exceed its dividend payment – a more optimistic view compared to the bank’s prior free cash flow forecasts which fell short of cash return.
Earlier this year, Ford announced its trans-Atlantic partnership with Volkswagen at the Detroit Auto Show. The collaboration will focus on commercial vehicles and could later expand to electric and self-driving vehicles.