J.P. Morgan analyst Ryan Brinkman spent an afternoon in Michigan with the team at Ford (F) that developed the new all-electric F-150 Lightning and came away so impressed, he couldn't help but to upgrade his price target on the automaker's stock.
In fact, Brinkman was more than just a little impressed.
"We were blown away by the ride experience. It is a surreal and unexpected feeling to accelerate from 0 to 60 mph in 4.5 seconds, to tow a 6,000 lbs. trailer up a 30 degree incline, and to perform extreme off-road maneuvers silently in a 6,500 lbs. vehicle. Similar to our first impressions driving the Mustang Mach-E in January, we walked away convinced that as customers, analysts, and investors begin to experience this vehicle first-hand, it will change the way they think about Ford as a brand and as a company," Brinkman said in a research note to clients.
Brinkman reiterated his Overweight rating on Ford shares (equivalent of a Buy rating) and lifted the price target to $16 from $15.
Ford shares are up about 6.5% to $12.90 since the Lightning was unveiled last Wednesday evening, according to Yahoo Finance Plus data. Brinkman's price target assumes at least 23% upside in Ford's stock from current levels.
The bid under Ford's stock this past week reflects a positive reception to the F-150 Lightning by consumers and analysts, such as Brinkman.
The extended range, battery-powered Lightning promises 10,000 pounds of towing capacity, over the air software updates and the ability to power your home via a backup power capability. This version — which starts at $50,000 or so — boasts a 300-mile range on a charge, 563 horsepower and travels 0 mph to 60 mph in about 4.4 seconds.
As of May 21, Ford CEO Jim Farley said the company had secured 44,500 reservations for the Lightning. Farley told Yahoo Finance Live the day before Ford had seen 20,000 pre-orders for the truck.
"Customers want this technology. You want to think of these vehicles not as electric, but just like your phone," Farley said in the interview.
Brinkman added in his client note that he has an "expectation of improving investor sentiment relative to the competitiveness and technological prowess of Ford's product portfolio and resulting implication for long-term growth and profitability."
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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