Susquehanna: Ford Motor 'Going In The Right Direction'

Matthew Stover of Susquehanna commented in a note on Monday that Ford Motor Company's (NYSE: F) fourth-quarter reports were slightly ahead of consensus and largely driven by below-the-line items.

Stover notes that Ford's North American results have been impacted by the launch of the F-150 truck which should improve in 2015. Europe remains weak with Russia weighing on improvements and the segment will continue to demonstrate weakness throughout 2015 but should improve.

Stover also adds that South America remains a “quagmire” but accounting changes have “insulated” earnings volatility. On the other hand, Asia Pacific will continue to “grind higher” on capacity expansion and new product introductions.

According to Stover, Ford's updated guidance offered in Detroit at the Auto Show contained few meaningful changes and a generally bullish outlook that reflects improved markets, new products and restructuring related margin improvements.

However, shares remain Neutral rated as shares appear to be “quite fairly valued” when compared to other automotive manufacturers and that an outlook for fundamental improvements beyond what the consensus expects is required to become more constructive on shares. Nevertheless, the analyst did raise his price target to $16 from a previous $15.