Ford: stock down on Jefferies comments
(CercleFinance.com) - Ford shares are back towards their annual lows on Monday on Wall Street after Jefferies downgraded its recommendation and lowered its target price for the stock.
Shares in the second-largest US car maker closed down almost 4% at under the $10 threshold, reaching their lowest levels since last August.
YTD the stock has fallen by over 18%.
Jefferies has downgraded its rating from "hold" to "underperform" and cut its price target from $12 to $9.
In a note, the broker expresses concern about the US group's lengthening inventory run-off, which now stands at 96 days, 26 and 18 days respectively longer than GM and Stellantis, despite a 4% rise in sales this year.
As for current production rates, which are in line with targets for 2024, they point to a difficult start to 2025, adds the broker
Jefferies adds that Ford will also have to face some difficult decisions in the coming months, namely a reorganization of its European activities, or even a possible departure from the Old Continent, as well as the implementation of its electrification strategy.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Shares in the second-largest US car maker closed down almost 4% at under the $10 threshold, reaching their lowest levels since last August.
YTD the stock has fallen by over 18%.
Jefferies has downgraded its rating from "hold" to "underperform" and cut its price target from $12 to $9.
In a note, the broker expresses concern about the US group's lengthening inventory run-off, which now stands at 96 days, 26 and 18 days respectively longer than GM and Stellantis, despite a 4% rise in sales this year.
As for current production rates, which are in line with targets for 2024, they point to a difficult start to 2025, adds the broker
Jefferies adds that Ford will also have to face some difficult decisions in the coming months, namely a reorganization of its European activities, or even a possible departure from the Old Continent, as well as the implementation of its electrification strategy.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.