Analysts at RBC Capital on Monday raised their price target on Ford Motor Co. F, +0.42% stock to $21, from $17, saying they continue to see upside for the auto maker.
Their new valuation method includes further breaking up Ford’s business, including its electric-vehicle business and investments in Rivian Automotive Inc. RIVN, +11.57%, to value the shares, they said. On Rivian, the analysts said they believe Ford views its investment in Rivian “as a financial one, so they may eventually sell-down to help fund Ford’s organic investment or other cash calls.” Ford Chief Executive Jim Farley last month vowed that Ford would become the second largest U.S. electric-vehicle maker. Ford shares have rallied 120% this year, compared with gains of around 22% for the S&P 500 index. SPX, +1.17%