Mentioned: F - FORD We raise our 12-month price target to $32, representing a '23 P/E of 12.5xand a premium to F's 10-year means forward P/E of 8.8x due to an expected rating of the shares as EV sales increase. We raise our adjusted EPSestimates by $0.10 to $2.00 for '21, by $0.05 to $2.25 for '22, and introduce'23 at $2.55. Ford posts a 17.1% decline in U.S. auto sales for December, bringing its Q4 U.S. auto sales to 508,451 units (-6.3% Y/Y) and a 26.8%increase over Q3, well ahead of the industry's 3% decline.

With additional market share gains coming from the F-150 Lightning, Bronco, and other vehicles, we remain bullish on Ford, expecting a combination of earnings growth and multiple expansion to propel shares higher as EV sales grow and the stock is valued less like a single-digit P/E multiple legacy automaker. Furthermore, we have a high degree of confidence in CEO Jim Farley and view F's global operations as having considerable low-hanging fruit in terms of additional cost and productivity improvement.$Ford(F)$