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Citi Cuts Price Targets for Ford and GM, Sees Risk to Ford’s EBIT Guidance -Breaking

by Mike Robinson

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© Reuters. Citi Reduces Ford Price Targets (F) and GM’s (GM); Sees Risis to Ford’s EBIT Guidance

Itay Michi from Citi updated his estimates on General Motors (NYSE:), and Ford (F). He expects Ford will miss the consensus analysts estimates and GM to surpass them for Q1E EPS. However, he says it’s still early to predict the Q1 setup.

Based on recent pricing data, Michaeli is confident that both Ford and GM can maintain their 2022 EBIT guidance. An analyst however sees Ford as a higher risk because of Ford’s high dependency on Q2-Q4 and Europe production.

Citi thinks that pickup trucks could be benefited from certain short-term consequences. These implications would strengthen the earnings potential for LT and boost the SoP potential.

Michaeli retained GM as her top pick and slightly lowered the price target to $100 from $23. An analyst maintained its neutral rating for Ford and lowered the price target from $23 to $18.

Ford’s slashed PT reflects changes in estimates and lower target multiples. These reflect increased risk due to a back-half loaded outlook for 2022, plus an incremental risk in Europe.

“Even though we think Ford has a greater NT risk due to the above factors, we have become more positive about the longer-term story especially since the March company updates. Michaeli shared this information in a client letter. “We still see LT upside pot above $30 on SoP.”

By Senad Karaahmetovic

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