Legacy automaker Ford (NYSE:F) managed to get out from under the UAW strike a few months back, but that wasn’t the only labor trouble it would find itself staring down. Nevertheless, reports note that one of the latest trouble spots for Ford is no longer a problem, at least for now. Ford and the local branch of the UAW, Local 62, reached a tentative agreement that would keep a strike off the table at its Kentucky plant.
Considering that the Kentucky plant is the most profitable plant Ford has, keeping that plant up and running every minute it can is vital to Ford’s ongoing profitability. Reports suggest that this may not be the end of Ford’s troubles, as several local contracts remain for Ford to address.
Not out of the Woods Yet
Ford has indeed managed to patch up this hole, at least for a while, but there are still plenty of cracks that require addressing. In fact, one of the biggest potential trouble spots for Ford now is over in London, where more than 3,000 of Ford’s white-collar workers were considering a move to strike if Ford won’t return to the negotiating table. While the impact of that strike may not be as substantial as the loss of the Kentucky plant, it remains to be seen just how much damage it would do, assuming a strike actually takes place.
Is Ford a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Hold consensus rating on Ford stock based on six Buys, seven Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 5.73% rally in its share price over the past year, the average Ford price target of $13.60 per share implies 12.68% upside potential.
