Why Ford Stocks Should Get Back on the Fast Track

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These reports, extracted and edited by Barron’s, were recently published by investment and research firms. Reports are a sample of analysts’ thinking; they should not be taken as Barron’s views or recommendations. Some of the reporters have provided, or hope to provide, investment banking or other services to the companies analyzed.


Ford engine

F-NYSE

Surpass Price $ 15.42 on October 19

by Credit Suisse

When we downgraded Ford last year, we were concerned that short-term execution issues would ultimately limit its ability to prepare for the long-term transition of the auto industry. Yet over the past year and more we’ve seen a big turnaround: Ford has ended its cycle of disappointed quarterly earnings and its transition to an electric vehicle / autonomous vehicle / digital world has accelerated sharply. We believe there are more opportunities ahead, as Ford can benefit not only from improving fundamentals, but more importantly, changing its perception of long-term positioning in EV / AV / digital. We’re setting Ford to Outperform Neutral and increasing our price target to $ 20 instead of $ 15.


Northern Trust

NTRS-Nasdaq

Surpass Price $ 125.51 on October 19

by RBC Capital Markets

Northern Trust had another fundamentally strong quarter, driven by strong growth in fee income, as well as more assets under management and custody. NTRS is a leading global wealth and asset manager with a history of delivering top results throughout a cycle. The low interest rate environment continues to weigh on its ability to grow net interest income and has led to high fee waivers for money market mutual funds. Rising rates in 2022 should ease some of these pressures. We are increasing our estimated earnings per share for 2021 and 2022 to $ 7.16 and $ 7.35, from $ 6.82 and $ 7.10, and increasing our price target to $ 133 from $ 117.

Goldman Sachs GS-NYSE Group

Surpass Price $ 406.07 on October 15

by Oppenheimer

Goldman’s EPS print in 3Q21 was literally off the charts, at $ 14.93 versus our estimate of $ 9.71 and the consensus at $ 10.14. It’s a reminder that the Fed unleashed mysterious and unpredictable animal spirits in financial markets by rapidly doubling its balance sheet. We are increasing our 2022 estimate to reflect ongoing mergers and acquisitions and funding strength through the first half of 2022, but keeping our estimates under control to reflect a significant ‘normalization’ from 2019 activity levels for the rest of the year. Maybe we are too conservative. Target price: $ 576 ($ 56 above previous).


Lam Research

LRCX-Nasdaq

To buy Price $ 565.50 on October 20

by Mizuho Securities

Lam Research reported a September quarter online and guided to a December quarter online, with Foundry / Logic [products] and DRAM [dynamic random access memory] strong, and NAND [flash memory] balanced in 2021. LRCX noted that headwinds, [including] supply chain constraints are impacting production, although he noted that industry demand remains healthy overall. However, a mixed outlook on memory (over 60% of revenue) limits investor sentiment and multiples on Lam. Maintain Buy, but lower our price target to $ 700 (from $ 725) to reflect the weaker memory environment.


LCNB

LCNB-Nasdaq

Surpass Price $ 17.50 October 20

by Boenning & Scattergood

LCNB [a bank based in Ohio] reported 3Q21 EPS of 39 cents per share, against our consensus estimate of 43 cents. Lower than expected net interest income, higher than modeled operating expenses and a higher provision led to the failure and was partially offset by a lower tax rate and number of shares. Overall, it was a mixed quarter for the LCNB as the net results were lower than those modeled on a lower NII. The balance sheet trends were positive, however, and it was nice to see quarter-over-quarter loan growth, but deposit growth continues to be difficult. Our target price is $ 19.


Dow

DOW-NYSE

Overweight Price $ 59.89 on October 20

by Alembic Global Advisors

We are pricing Dow Overweight, with a target price of $ 85 over 12 months. The [chemical producer] reported third-quarter operating EPS of $ 2.75, significantly exceeding the consensus estimate of $ 2.56. Management’s short-term outlook was positive: the company forecasts strong end-market demand through 2022, coupled with short-term logistics constraints and low inventory levels.


Knight-Swift Transport

KNX-NYSE

In line Price $ 54.32 on October 20

by Evercore ISI

Knight-Swift posted 3T EPS of $ 1.30, limiting our estimate of $ 1.06 and Street’s average forecast of $ 1.07, as each business segment generated revenue expansion and more margins. strong than expected. Full-year forecast has been raised from $ 4.50 to $ 4.55 (from $ 3.90 to $ 4.05), indicating an even stronger 4Q21 result, which now looks more likely to continue until 2022. As such, we are increasing our forecast for the year 2021 and 2022. EPS projections to $ 4.51 (up from $ 3.96) and to $ 4.75 (down from 4 , $ 01), respectively, with our target stock price rising to $ 59 (from $ 54).

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