Skip to main content

Morgan Stanley's Bold Calls for Ford, While GM Rallies on Earnings

In the ever-evolving landscape of the U.S. automotive sector, both Ford (F) and General Motors (GM) are making headlines with strategic moves that could reshape their trajectories.

ford company stock investment

Ford Takes Pole Position, Embracing Change

Morgan Stanley's automotive analyst, Adam Jonas, has made a groundbreaking call, placing Ford at the forefront of the U.S. automaker hierarchy. In a strategic move, Jonas suggests Ford scales back spending on electric vehicles (EVs) amid the industry-wide shift. Surprisingly, the deceleration in EV adoption is seen as an advantage for Ford.

While tangible progress may unfold gradually, Jonas emphasizes Ford's ability to act decisively and shield against potential value erosion. In response to the transformative shift in the global auto industry, Morgan Stanley sets a robust price target of $15 per share, signaling a substantial 28% upside. A bullish bull case estimate of $21 per share adds to the optimism, with Ford's 5.1% dividend yield appealing to investors seeking growth and income.

As Ford gears up for its Q4 results on February 6, the stock witnessed a notable upswing, surging by 3% on Thursday. In an industry undergoing a transformative paradigm shift, Ford's strategic recalibration has positioned the automaker for potential resilience and growth.

Morgan Stanley supplements its endorsement of Ford by elucidating four key reasons in a note to investors. Recognizing the global auto industry's transformative shift, the firm commends Ford's acknowledgment that its current EV strategy, conceived in 2021/2022, might be unsustainable.

General Motors Accelerates Amidst Challenges

Meanwhile, General Motors (GM) took the spotlight on Tuesday with an upward trajectory fueled by robust Q4 results and optimistic guidance for 2024. Despite a 54% year-on-year decline in adjusted earnings before interest and taxes (EBIT) to $1.76 billion in Q4, GM's strategic resilience shined through.

The UAW strikes took a toll, with a $900 million EBIT-adjusted impact in Q4 and a $1.1 billion impact for the full year. However, GM's management expresses confidence in the U.S. economy's resilience, anticipating robust industry sales of approximately 16 million units.

GM outperformed competitors in the U.S. market in 2023, securing increased market share with strong margins. Notably, GM's success in the affordable quadrant and its upcoming ICE models showcase the company's diverse and appealing portfolio.

Addressing the EV landscape, GM acknowledges a slowdown but remains optimistic about forecasts predicting a rise from 7% to at least 10% in U.S. EV deliveries for 2024. Despite challenges in China, GM foresees a return to profitability starting in Q2.


In summary, GM's Q4 results exceeded expectations, considering the impact of UAW strikes, and the bullish 2024 guidance fuels positive investor sentiment. This robust performance may set a positive precedent for Ford as it prepares to report next week. The automotive industry is witnessing transformative shifts, and both Ford and GM are navigating this changing landscape with strategic moves.

Interested in making informed trading and investing decisions?

• Explore our Stock Investor service for insightful investing strategies. 
• If you are looking for dynamic trading experiences, check out Basic+ | Swing AlertOption Income Alert, or our Trading Room. Sign up today for as little as $1 in the first month

Trading Risk Disclaimer

All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities. Always consult your financial advisor and/or tax pro before making substantial portfolio adjustments. 

Popular posts from this blog

Bitcoin Faces Some Bearish Pressure Amid ETF Outflows

Apple’s AI Gamble at WWDC: What’s at Stake

Tesla Surges Over 10% Following Q2 Delivery Beat