Ford Rallies on Goldman Upgrade

Shares of Ford Motor (F) are finally getting some love. The stock is up today thanks to an upgrade from Goldman Sachs. They raised the stock from a buy to a hold. The shares, which had been as low as $14.86 one week ago, have been as high as $15.66 today.

The firm increased its price target to $19 from $18, citing Ford’s “superior” growth outlook and its improving positioning in China.

Goldman expects earnings momentum to accelerate through 2016 driven by production of the new F-150 pick up truck.

Analysts noted that Ford is seeing strong truck pricing and has limited exposure to China.

Bed Bath & Beyond (BBBY) reports after the closing bell. Spencer Jakab looked at the stock in today’s WSJ:

So Bed Bath is looking a bit rumpled. But management’s strong track record and the company’s proven ability to throw off cash should make it interesting at its current price to both public and private investors.

Last July, the company issued debt and launched a big share buyback. The moves were perhaps opportunistic, due to Bed Bath’s depressed share price. There is also the possibility they were meant to make it a less attractive leveraged-buyout candidate.

Bed Bath’s debt-adjusted market value is currently just 7.1 times earnings before interest, taxes, depreciation and amortization. That is a 7% discount to its 10-year average.

Meanwhile, its price and pristine balance sheet could still make the company interesting to private-equity firms.

Posted by on June 24th, 2015 at 12:06 pm


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