The Zhitong Finance App learned that the stock price of Ford Motor Company (F.US), an established US car manufacturer, rose slightly in pre-market trading on Thursday. Earlier, Wall Street investment agency Bernstein (Bernstein) rated Ford Motor's stock coverage for the first time as “outperforming the market” and gave it a target price of 16 US dollars (Ford closed at $12.03 on Wednesday). Bernstein believes that the Detroit car builder has good prospects for long-term development. Daniel Roeska (Daniel Roeska), an analyst at the agency, believes that Ford's electric vehicle investment plan will eventually drastically improve its financial performance on the basis of already strong sales of pickups and large SUVs.

Bernstein said the iconic US automaker is expected to continue to reap strong profits from its core market and the investment cycle driven by US policy. Rosca, an analyst at the agency, pointed out, “Although the scale of execution of the electric vehicle business is getting larger, we have seen a clear path. Ford can achieve significant operating leverage in the future and ultimately increase profits for the company's electric vehicle division.”

Bernstein expects Ford's mid-term results to improve significantly, as its operating leverage and strong automotive industry growth cycle will help offset price headwinds in various markets.

Bernstein also predicted in the research report that Ford Motor's 2024 EBIT profit will increase by about 15% compared to general market expectations, driven by vehicle model updates in the US market, a drastic reduction in Model e losses in Ford's electric vehicle division, and broader business cost control improvement measures.

Earlier, at a time when the plug-in car market was slowing down, Ford Motor management quickly adjusted Ford's electric vehicle strategy. Thanks to strong sales of pickups and large SUVs, the company's first-quarter results exceeded market expectations. As the growth rate of electric vehicle sales in the US almost stalled, Ford CEO Jim Farley cut back on overly aggressive electrification plans and instead produced more SUVs and pickups to fund future growth.

In its performance report, Ford reiterated this year's estimated profit before interest and tax of US$10-12 billion, and indicated that it is trending towards high-end figures in this range. The company also raised its free cash flow forecast to $6.5 billion to $7.5 billion.

Ford's competitor General Motors announced results that also exceeded market expectations. Both established American car companies are benefiting from strong demand for traditional gasoline-powered models.

Ford shares rose 0.58% to $12.11 in pre-market trading. The stock's 52-week high was $15.20.