Analysts Need To Adjust Ford (F) Price Targets Higher

Shares of Ford (NYSE: F) are at new multi-year highs today following news yesterday that December vehicle sales rose 33% and its U.S. market share grew to 15% for the year up from 14% in 2008. Ford's December market share was 17.1%, its highest since May 2006.

With shares of Ford now trading at $11.28, above the average Wall Street price target of $10.69, let the price target raise parade begin.

Deutsche Bank was one of the first to lift their price target, but it appears they still need to come higher. The firm lifted their price target from $8.50 to $11. The firm raised their 2010 and 2011 earnings estimates for Ford (to $0.49 and $1.08 from $0.33 and $0.97) to reflect a 100bp increase to our 2010/2011 market share assumption (16%, vs. 15% previously). They also estimate that strong asset returns could reduce the underfundedness of its global pension plan by $6.0 billion.

A few days back, StreetInsider.com discussed that if Ford can get earnings up to $2.00 per share then a case can be made that the stock is worth $24, or a PE multiple of 12.

While it is unlikely that anyone will go to a price target of $24 anytime soon, with the 'street high' price target at just $15 per share (Buckingham Research) and the average price target below $11, don't be surprised if the sell side starts moving their price targets higher and the 'street high' to or near $20 per share. This action could act as further catalysts for the shares.

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