FORD BULLISH ON RESTRUCTURING PLANS, RATINGS UPGRADE
Ford is currently trading at 9.48-higher by about 5.68% as compared to the previous closing. In Pre-market trading on Monday, the stock was traded higher by 4.57% over Friday’s close. The stock has continued gaining after the opening bell.
In recent news, Goldman Sachs upgraded its ratings for the automaker to buy from neutral. The investment firm also raised its 12-month price target on the company’s stocks to $12 from $9. The move implies a 33.6% upgrade on stock price based on Friday’s closing price. Goldman also said that Ford would see an earnings trough in 2019, followed by improvement based on refreshments in the product line as well as cost improvements.
Goldman also added that Ford’s announcement of $7 billion in the restructuring of its cash spending over the next five years will help improve its plant footprint and cost structure.
Ford stocks are down 28% year to date. The company reported a $991 million profit for the third Quarter on 24th October.
On the technical front, the RSI is currently at 59.92% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 9.35 TAKE PROFIT AT 9.75 STOP LOSS AT 9.15