Ford Motor Co. (F:NYE) has made a strategic move in its electrification drive by appointing Lisa Materazzo as the global chief marketing officer (CMO). Materazzo, a seasoned automotive marketing executive, previously held the role of North American marketing executive at Toyota (TM:NYE) and brings nearly two decades of industry experience to her new position. This article will highlight the impact of these transformations on Ford stock forecast.
Filling a Year-Long Void:
Ford had been without a CMO for almost a year, following the departure of Suzy Deering in late 2022. In her new role, Materazzo will report directly to CEO Jim Farley, assuming leadership over advanced product planning and marketing activities spanning Ford’s three key divisions. In 2022, Ford underwent a structural transformation, dividing its brand into three distinct arms: Ford Blue (comprising combustion models), Ford Model e (housing EV models), and Ford Pro (dedicated to commercial vehicles).
Executive Reshuffling:
In addition to Materazzo’s appointment, Ford announced two other significant executive changes. William Clay “Will” Ford III, the son of executive chair Bill Ford and great-grandson of the company’s founder, Henry Ford, will now serve as the general manager of Ford Performance. With a background spanning nearly a decade in venture capital investing, Will Ford is tasked with elevating Ford’s motorsports and racing division into a lifestyle brand.
Simultaneously, Elena Ford, who previously held the role of Ford’s chief customer experience officer, has been named chief dealer engagement officer. Her responsibilities include close collaboration with the company’s approximately 10,000 dealers worldwide. Elena, who boasts a long history with the company since joining in 1995, has held various roles during her tenure.
Ford’s Bid to Seize the EV Market:
American automakers are aggressively competing to secure a larger share of the global EV market, where China currently holds a dominant position. The Biden Administration’s drive for a greener future has further intensified the focus on EVs and hybrid vehicles among automakers. Ford’s appointment of a new CMO signifies the company’s commitment to reinvigorating its brand presence and making significant strides in the EV segment.
Investor Insights:
UBS analyst Patrick Hummel recently initiated coverage of Ford stock with a Buy rating. Hummel acknowledged the looming threat of a potential UAW strike, which has put pressure on the stock prices of major automakers. However, he believes that the possibility of a four-week strike is already factored into the current stock prices.
Hummel suggests that a strike may not extend beyond a certain point, with automakers and union workers likely to find a resolution soon. This, in turn, could lead to improved sector margins and a potential return to previous peak stock levels, despite the short-to-mid-term challenges.
Ford Stock Forecast:
According to a consensus of 11 analysts, the average target price for Ford Motor Company over the next 12 months stands at USD 14.72. This price ranges as high as USD 20 and as low as USD 11 for September 2024.
Analysts Ratings:
The average analyst rating for Ford is ‘Buy.’ Stock Target Advisor’s internal stock analysis, however, classifies Ford Motor Company as ‘Neutral,’ based on a balance of seven positive signals and seven negative signals. As of the last closing, Ford Motor Company’s stock traded at USD 12.45. Over the past week, the stock price registered a positive change of +2.98%, while over the past month, it exhibited a gain of +2.55%. Over the past year, the stock has faced a decline of -19.88%.
Conclusion:
Ford’s recent executive appointments, such as hiring Lisa Materazzo as CMO, demonstrate their strong commitment to the electric vehicle industry. With a focus on EVs and key players on their team, Ford aims to make significant progress in the competitive automotive sector.
