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Ford's 2021 Guidance May Be Conservative, RBC Capital Markets Says

· 02/05/2021 05:42

10:37 AM EST, 02/05/2021 (MT Newswires) -- Ford's (F) 2021 implied EPS guidance may be conservative, RBC Capital Markets said in a note to clients Friday.

The company said it expects earnings from $1.25 to $1.45 this year, though ex-Rivian the outlook is more likely for earnings of $1.10 to $1.30 a share, RBC said.

Considering factors such as better improvement in Europe and China operations and the impact of Ford's partnership with Rivian, underlying EPS is implied at more than $1.30, the bank's analysts said. Excluding the contribution from business with Rivian, earnings should be about $1.12 a share.

RBC said the automaker's venture into electric and autonomous vehicles is a welcome development that could support an improving narrative. However, it also noted achieving 8% margins may take longer and prove difficult.

The stock remains rated with sector perform, and the price target was increased to $13 from $10.

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