Jefferies Upgrades Ford on Profit Outlook

Investing.com - Ford Motor (NYSE:F)'s ambitious cost-cutting plan will lead to better-than-expected profitability in two years, according to Jefferies.The Wall Street firm raised its rating from hold to buy, while upping its 12-month stock price target from $13 to $14.In a note to clients, Jefferies says other Wall Street firms are not giving Ford enough credit for its goal of reducing costs by $25 billion over the long term.Jefferies says that effort will mean an operating profit margin of 7.0% by 2020, more than the 6.1% consensus estimate of Wall Street. Ford recently decided to phase out most of the automobiles it makes in North America because of declining sales and profits.Ford shares are flat over the past 12 months, but are down some 14% from their January high.