Analysts weren’t inspired by Ford’s earnings numbers, but remain optimistic in the long term. Here’s why

Ford (F) shares fell on Tuesday after analysts at JPMorgan and Bank of America lowered their price targets following the automaker’s disappointing figures third quarter results.

Shares of Ford fell more than 8% Tuesday morning. The company reported Monday that third-quarter earnings had missed analysts’ expectations and lowered full-year expectations. The company forecast full-year adjusted profit of about $10 billion, down from its previous estimate of $10 billion to $12 billion.

JPMorgan analysts lowered their price target to $14 from $15, citing the company’s “persistently high warranty costs.” giving one assessment of obesity.

Bank of America cut its price target to $19 from $20, with revenue from Ford Blue, its gasoline passenger car and hybrid division, coming in lower than expected. but maintained a buy call on the company.

Ford Pro Division a reason for optimism, notes BofA

BofA cited Ford’s “positive view” of its recent operations, noting that the automaker’s management cited strength in its core truck market – and especially in its Pro division, which serves commercial customers.

Ford Pro division’s third-quarter revenue rose 13% year-over-year, ahead of Wall Street estimates, while Ford Pro Intelligence paid software subscriptions rose 30%.

BofA said it had maintained its buy call due to “Ford’s strong near-term product cadence combined with management’s focus.”

We expect better profits and progress in 2025+,” BofA said.

JPMorgan, meanwhile, said it maintained its overweight rating on Ford because of the “great value” its shares offer. The broker noted that Tesla (TSLA), while one of the few profitable electric vehicle (EV) makers, was expected to generate a much lower level of free cash flow than Ford this year.

Ford shares fell 8% on Tuesday.