Skip to main content

Featured

What’s Behind the FBI Raid on John Bolton?

Unfolding of the Morning Raid: Timing, Locations, and Targets At approximately 7:00 a.m. on August 22, 2025 , FBI agents carried out coordinated searches on two key locations associated with former National Security Adviser John Bolton : his residence in Bethesda, Maryland , and his Washington, D.C. office ( New York Post , Reuters , The Washington Post ). What’s Behind the FBI Raid on John Bolton? The Maryland home search began in the early dawn hours and was supported by Montgomery County police , who helped secure the perimeter ( The Bulwark , The Washington Post ). Agents later executed a warrant at his D.C. office once judicial authorization was granted ( New York Post ). Bolton himself was not under arrest and had not been charged at the time of the action ( New York Post , AP News , The Washington Post ). Scope and Origins of the Investigation The raids were executed under authorization from FBI Director Kash Patel , who had revived the investigation upon assumi...
Post a Comment
Read more

Will Ford’s EV Momentum Drive Its Stock Higher After Jefferies Raises Target to $9?


Robust Shift in Analyst Sentiment Propels Ford's Forward Guidance



Jefferies analyst Philippe Houchois raised Ford’s 12-month price target from $8 to $9 while retaining an Underperform rating. This adjustment is rooted in nuanced shifts affecting the automaker's near–term profitability and strategic trajectory. Key considerations included Ford’s net tariff outlook at $2 billion, higher aluminum exposure, and improved expectations for its electric vehicle division, Model e.(EV, Investing.com)

Ford’s Tariff Landscape: Cost Offset Against Emissions Performance

Ford’s tariff exposure—particularly to aluminum—imposes a notable cost burden. However, Jefferies highlights that this is partially offset thanks to Ford’s lower average emissions, driven by a strong hybrid portfolio and U.S. assembly scope. As a result, Ford generates favorable Corporate Average Fuel Economy (CAFE) metrics, mitigating greenhouse gas benchmarks and regulatory risk.(EV)

EV Losses Easing: A Turning Tide for Model e

The electric vehicle division, Model e, has carried heavy losses in recent years—over $5 billion in 2024 with similar projections into 2025.(AP News, EV) Jefferies anticipates material easing of Model e losses beginning 2026, driven by:

  • Improved unit economics in Europe

  • Waning investment intensity for Generation 2 EVs (“Skunkworks”)

  • Leaner, more competitive product portfolio

By 2026, losses could fall by roughly 20%, targeting around $3 billion, achieving a modest 5% adjusted EBIT margin.(EV)

Upgraded Financial Metrics: A Slight but Significant Uptick

Jefferies lifted Ford’s 2025 adjusted EBIT estimate by 2% to $6.9 billion, reflecting stabilizing operations, particularly within Ford Credit. Free cash flow projections were also revised 12% upward to $2.7 billion, though still trailing Ford’s official guidance.(EV) The 2026 outlook is particularly optimistic, with improved margins across both Blue (gas/hybrid) and Model e segments.

Strategic Merits and Overhangs: Valuation and Liabilities

Jefferies notes Ford’s current valuation at 7× projected 2026 earnings, alongside persistently elevated warranty liabilities—both of which temper near-term optimism. Despite this, Ford’s strong hybrid performance, tariff resilience, and emerging EV improvements underpin a cautiously constructive outlook.(EV)

Strategic and Brand Outlook: What Lies Ahead

  • August 11: Ford is slated to reveal its updated EV strategy in Kentucky, emphasizing affordable future models—likely tied to Model e renewal initiatives.(EV)

  • Ford remains committed to dividend continuity—marking 14 consecutive years of consistent payouts at a 6.6% yield, preserving shareholder income even amid uncertainty.(Investing.com)

Summary Table: Jefferies’ Ford Outlook

Category 2025 Estimate 2026 Estimate
Price Target Raised from $8 to $9 —
Rating Maintained at Underperform —
Adjusted EBIT Increased to $6.9 billion Modest 5% margin anticipated
Model e Losses ~$5 billion Targeted ~$3 billion (20% reduction)
Free Cash Flow Raised to $2.7 billion —
Tariff Outlook ~$2 billion net burden —
Valuation ~7× 2026 earnings —
Strategic Overhangs Warranty issues remain —

Why This Matters

Ford’s refined guidance highlights a gradual pivot point: while short-term challenges persist—tariffs, EV losses, warranty costs—the trajectory toward sustainable Model e performance and resilient hybrid operations offers cautiously improving fundamentals. At a $9 target, Jefferies reflects tempered optimism underpinned by concrete cost, earnings, and strategic indicators.

Let me know if you'd like deeper analysis on Ford's hybrids, tariff exposures, or the EV strategy reveal!

Location: United States

Comments

Post a Comment