Ford stock could surge 127% if the company is able to carve out a new revenue stream from data subscriptions, Morgan Stanley says.
Morgan Stanley says if each vehicle could generate $10 a month of data subscriptions, this would create around $9 billion in recurring revenue.Ford stock could surge 127% if the company is able to carve out a new revenue stream from data subscriptions, Morgan Stanley says.Morgan Stanley's prediction comes after Ford announced it is entering a six-year deal worth hundreds of millions of dollars with Alphabet's Google on Monday.
Morgan Stanley analysts led by Adam Jonas said this alliance has the potential to double Ford's market capitalization to nearly $100 billion, or $25 per share before discounting. In a note to clients, Jonas applied a 20x EV/EBITDA multiple to the Dearborn, Michigan-based company.