Ford (F) stock popped on Tuesday morning as positive reviews on Ford's capital markets day continued to roll in from Wall Street more than a week after the event.
On Tuesday, Philippe Houchois, an equity analyst at Jefferies, upgraded Ford stock from Hold to Buy and boosted his price target from $13 to $16.
"Last week's Investor event in Dearborn raised our confidence that Ford finally has the plan & the team in place to close a deficit of execution that has dogged shares for years," Houchois wrote in a note to clients.
Shares in the legacy automaker have rallied since it hosted its capital markets day on May 22, where the company shed light on its new structure that separates electric vehicles from the traditional gas-powered business.
A few days later, Ford announced a partnership with Tesla that provides Ford owners access to more than 12,000 Tesla Superchargers across the US and Canada.
Ford stock is now up nearly 10% over the last five trading sessions as optimism around the company's turnaround reverberates around the Street.
"There is something grounded and 'back-to-basics' in Ford's strategy of focusing on its strengths," Houchois wrote.
Ford's new business structure consists of three units: Ford Blue (traditional autos), Ford Model e (electric vehicles), and Ford Pro (commercial vehicles). Houchois and Jefferies see Ford's Model e unit reaching profitability in 2025 while the automaker's new launch of "Gen 2" vehicles might push sustainable profitability back to 2026.
The company's choice to build targeted vehicle models rather than create EVs in every size it once had in traditional units will be a tailwind for Ford, Jefferies argues.
Ford's second generation line of EVs will include a new Lightning pickup and three-row crossovers, according to Ford CEO Jim Farley.
“We don't want to do generic vehicles anymore,” Farley told Yahoo Finance at the capital markets day. “We don't want to be all things to all people.”
One of the key drives to Ford's EV push, and the electrification movement in general, is how easily customers can charge their vehicles. Wall Street analysts agree Ford's deal with Tesla last week is a step in the right direction.
"We believe this is a clear positive for its EV owners to have an improved user experience," Goldman Sachs Mark Delaney wrote in a note to clients on Monday. "To the extent it helps Ford sell more EVs, it also reinforces the importance of getting to profitability on those vehicle sales. Ford discussed having EVs that can charge quickly (and have a smaller battery) as part of its strategy to improve user experience and profits at its recent investor day, and we view this step to enhance the charging network as a step toward that."
Senior reporter Pras Subramanian contributed to this report.
Josh is a reporter for Yahoo Finance.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
