Here is Why Ford Motor (F) is Trading Higher Lately

Ford Motor Co. (NYSE:F), established in 1919, is one of the oldest automakers in the world. It manufactures a range of cars, trucks, and SUVs. The company sells most luxury vehicles under its Lincoln brand and the rest of the vehicles under the Ford brand. With the recent boom in the electric vehicle (EV) market, the company is now planning to launch its own EV lineup to capitalize on the massive opportunities present in that space.

Detroit, Michigan-based Ford shares did not gain any value during 2020. However, the stock is performing well this year, with shares already up nearly 30 percent on a year-to-date basis. Ford stock climbed 8.38 percent and 6.17 percent on Wednesday and Thursday, respectively. The latest stock rally follows a price-target hike and positive comments from Deutsche Bank.

The research firm lifted its price target for Ford stock from $9 per share to $11 per share, while maintaining a “Hold” rating. Deutsche’s analyst Emmanuel Rosner believes that the company’s quarterly report and 2021 outlook next month could act as a growth catalyst. Rosner expects strong volume growth for auto sales in the U.S. this year, as the pandemic ends.

Separately, Mad Money’s host Jim Cramer highlighted that the U.S. government, under the administration of Joe Biden, will introduce more environment friendly policies. The focus on clean energy will ultimately favor the companies with a strong EV lineup.

While giving an interview, Cramer said, “Be ready for more stringent environmental regulations that push people into electronic vehicles, and I’m increasingly drawn to Ford, because they’re electrifying the F-150 and they have a nice investment in Rivian, the electric truck developer.”