According to a Reuters report, foreign automakers have shown interest in the Ford Motor Company (NYSE: F) India plant-based in Tamil Nadu. Shares of the global automaker closed at $20.47 on December 30.
Ford India PlantThe Tamil Nadu state industries minister said on Thursday that foreign automakers have contacted the government of India, showing interest in buying the Ford plant.
In September, Ford India had announced that it would close down two plants in India as the company’s vehicles have not spiked interest with Indian customers. The company faces stiff competition from national automakers in the country and has been struggling to manage its profitability.
Ford’s factory in the state of Gujarat was slated to close by the end of 2021, and the auto and engine production plant in the state of Tamil Nadu is expected to be shut down by 2022. Earlier attempts at talks with the Tata Group to buy the plant were unfruitful, the minister said.
Tamil Nadu also hosts other auto manufacturing plants of international players like BMW, Daimler, Hyundai, Nissan, and Renault. The burgeoning population of India is an attractive market for both domestic and international players.
Though many automakers have failed to make a mark in the country, India remains a popular choice for many companies especially now with EVs catching the populace's attention.
CommentsThangam Thennarasu, industries minister of Tamil Nadu said, “Early-stage talks are going on… It is eventually up to Ford as it will be a commercial arrangement. We are merely facilitating talks between the companies.”
The minister did not disclose the names of the interested buyers.
Wall Street's TakeCitigroup analyst Itay Michaeli recently lifted the price target on the stock to $23 from $20 while maintaining a Hold rating.
Overall, the Ford stock has a Moderate Buy consensus rating based on nine Buys, four Holds, and three Sells. The average Ford price target of $19.73 implies 5% downside potential to current levels.
Insider TradingTipRanks’ Insider Trading Activity shows that Insider Signal is currently Positive on Ford, with corporate insiders buying $29.2 million shares in the last quarter.
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Michigan-based automotive giant Ford Motor Co. (F) has received an order for 184 Mustang Mach-E SUVs from New York City as part of the city’s fleet-electrification push, according to a report published by Bloomberg.
Several of the city’s agencies, including the Department of Parks and Recreation, Sheriff’s Office, and the New York Police Department will use the all-electric SUVs.
Ford is expected to deliver the vehicles by June 30, the Department of Citywide Administrative Services said.
The department’s Acting Commissioner, Dawn M. Pinnock, said, “Smart investments in fleet electrification will help New York City break its dependence on fossil fuels.”
Meanwhile, the city is also considering ordering 250 units of Tesla’s (TSLA) Model 3 sedans for the police department.
Ford stock closed 1% down on Wednesday. It lost another 0.5% in the extended trading session to end the day at $20.46.
Wall Street’s TakeRecently, Wells Fargo (WFC) analyst Colin Langan maintained a Buy rating on the stock and hiked the price target from $19 to $25 (21.6% upside potential).
In a note, the analyst said, “Ford's global units will likely grow by 9% year-over-year in 2022, with North America outperforming with a 16% growth.”
Additionally, Brian Johnson, an analyst with Barclays (BCS), reiterated a Buy rating on Ford and raised the price target to $23 from $18 (12% upside potential).
Overall, the stock has a Moderate Buy consensus rating based on 9 Buys, 3 Holds and 3 Sells. The average Ford Motor stock price prediction of $19.50 implies 5.2% downside potential. Shares have gained 135.2% over the past year.
Website TrafficTipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Ford’s performance.
According to the tool, compared to the previous year, Ford’s website traffic registered an 8.6% rise in global visits in November. Moreover, the website traffic has increased 11.6% year-to-date against the same period last year.
Download the mobile app now, available on iOS and Android.
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