Piper Sandler Sees $2.8 Billion EBIT Upside for Ford (F)

Ford Motor Company (NYSE:F) ranks among the stocks with the lowest forward PE ratios. Piper Sandler reaffirmed its Overweight rating and $16 price target for Ford Motor Company (NYSE:F) on January 26. The firm highlighted the possibility of warranty enhancements as a major upside driver for 2026. In 24 of the last 27 quarters, Ford Motor Company (NYSE:F) has outspent rival General Motors on warranty costs as a % of vehicle price, indicating that the company has a history of quality concerns.

According to Piper Sandler, Ford Motor Company (NYSE:F) may increase its EBIT by up to $2.8 billion in 2026 compared to 2025 if these quality issues are resolved. This would result in a $0.54 increase in EPS year-over-year. This possible earnings boost would add to Ford Pro’s solid performance, which Piper Sandler describes as Ford’s highest-margin business with access to the housing sector.

Meanwhile, on January 23, Barclays analyst Dan Levy reissued a Hold rating on Ford Motor Company (NYSE:F) and lifted the company’s price target from $12 to $13. The firm stated that the update represents the company’s revised forecast on the mobility segment as part of its Q4 earnings outlook.

Ford Motor Company (NYSE:F) designs, manufactures, markets, and services a full range of vehicles, including cars, trucks such as F-Series, SUVs, commercial vans, and luxury Lincoln models.

While we acknowledge the potential of F to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than F and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.