Ford Pro and Software Revenue Drive Growth Opportunities
- Goldman Sachs upgrades Ford shares to ‘Buy’ from ‘Hold’
- Ford Pro, the company’s commercial business, generates a high operating profit margin of 15.1%
- Targeted software revenue of $1 billion in 2025 and 20% of Pro operating profit in 2026
- Cost actions in ICE and EVs may offset industry headwinds
- Ford stock has fallen 13% this year, trading at a low end of its historical range
Goldman Sachs analyst Mark Delaney upgraded Ford Motor shares to ‘Buy’ from ‘Hold’, citing potential for profitability improvement through the company’s commercial business, Ford Pro, and growing software and services mix. The automaker aims to generate $1 billion in software revenue by 2025 and target a 20% share of operating profit from software and physical services in 2026. Cost actions in ICE (internal combustion engines) and EVs may help offset industry headwinds. Ford stock has fallen 13% this year, trading at the low end of its historical range.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Goldman Sachs upgrading Ford Motor’s shares and the reasoning behind it, including details on Ford Pro, software revenue targets, and cost actions in ICE and EVs. It also includes relevant market comparisons and analyst ratings. The information is based on research and financial data.
Noise Level: 2
Noise Justification: The article provides relevant information on Ford Motor’s upgrade by Goldman Sachs and the potential for profitability improvement through its commercial business and software services. It also mentions the current market performance of Ford stock. However, it does not delve into long-term trends or possibilities, hold powerful people accountable, explore consequences, provide scientific rigor, stay on topic without diving into unrelated territories, support claims with evidence, or offer actionable insights.
Public Companies: Ford Motor Company (F), General Motors (GM)
Key People: Mark Delaney (Analyst at Goldman Sachs)
Financial Relevance: Yes
Financial Markets Impacted: Ford Motor Company’s stock and its competitors (General Motors)
Financial Rating Justification: The article discusses the upgrading of Ford Motor Company’s shares by Goldman Sachs, which can impact the company’s stock price and potentially affect the financial markets. It also mentions the performance of Ford’s competitors, General Motors.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event in the text and no major financial crisis or accident occurred in the last 48 hours.
Move Size: The market move size mentioned in this article is a 2.5% increase in Ford’s share price in premarket trading, as it rose to $10.82.
Sector: Technology
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks
www.barrons.com 
