Ford (NYSE:F) Probably Volatile in Short Term, on Guidance Versus Expectations

With some analysts having an strong bullish sentiment over Ford (NYSE:F), it appears whatever guidance they give (probably more conservative), will cause some volatility in the stock in the short term.

Barclays says, "We believe Ford is likely to report strong 4Q10 results that could beat our just ahead of consensus EPS of $0.49 (consensus at $0.48), with upside potential from another release of loss provisions at Ford Credit, as strong lease residuals and low charge-offs have allowed Ford Credit to consistently beat expectations in 2010. At the same time, anticipating the stock reaction on earnings is difficult as some of the more bullish Street expectations are well above consensus, and any 2011 guidance from Ford is likely to be directional and conservative, which could create additional volatility...Longer term, we continue to see upside potential as favorable product and pricing support further improvement in earnings power over the mid-term."

Barclays maintains an "Overweight" rating on Ford (F), which closed Wednesday at $18.37, up $0.48, or 2.68 percent. Barclays has a price target on Ford of $23.