Automotive major Ford Motor Company (NYSE:F) recently revealed that it has entered into an agreement with data analytics provider Verisk (NASDAQ: VRSK) to offer standardized, insurance-ready telematics data from connected Ford vehicles in Europe. The service will be available in the UK, France, Germany, Italy and Spain.
Following the news, shares of the company rose nearly 1% to close at $16.12 during Tuesday’s extended trading session.
The partnership aims to help insurers by evaluating their driving behavior and developing usage-based insurance programs. This will allow insurers to have a clearer view of driver risk, while consumers will be able to get personalized insurance offers for their Ford vehicles.
User data will be accessible by Verisk’s Data Insight Hub with their consent. With this access, insurers will be able to use the standardized metrics that Verisk generates from connected Ford vehicles, providing them with relevant data on their driving behavior.
Business Operations Manager, Enterprise Connectivity, Ford of Europe, Mark Harvey, said, “We are delighted to extend our agreement with Verisk in Europe. With their innovative analytics solutions, we are able to ensure that our customers receive the most accurate and economical insurance plan options, rewarding safe driving behavior. »
Recently, Credit Suisse analyst Dan Levy reiterated a buy rating on the stock with a price target of $25, implying upside potential of 56% from current levels.
The analyst said: “While there are a number of challenges that need to be addressed in this transition, we believe this is a key positive for Ford – not only do we expect the reorganization to accelerate Ford’s transition to an EV world, but with this venture structure investors will have better transparency on Ford’s transition to electric vehicles and could better reward Ford.
“Overall, we continue to be positively surprised by Ford – as we noted in our Ford upgrade last fall, Ford has seen the dawn of a new era, greatly improving its positioning in a world of electric vehicles… which should lead to significant future value creation.”
The Wall Street community is cautiously bullish on the stock and has a Moderate Buy consensus rating based on 8 buys, 6 holds and 2 sells. Ford’s average stock forecast of $23.13 implies the stock has upside potential of 44.3% from current levels. The shares have gained 27.5% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s largest website usage monitoring service, provides insight into Ford’s performance this quarter.
According to the tool, year-to-date traffic to Ford’s website was down 7% from a year earlier.
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