Ford: the stock suffers from a recommendation downgrade

(CercleFinance.com) - On Wednesday, Ford shares were one of the biggest decliners in the S&P 500 index on the New York Stock Exchange, the victim of a note from Morgan Stanley in which the broker expressed concern about the deteriorating economic situation in China.


At around 11:15 a.m. (Wall Street time), the stock was down more than 4%, while the S&P index was hovering around equilibrium.

In a study of the US automotive sector, Morgan Stanley expressed concern about the "butterfly effect" resulting from the worsening economic situation in China.

China produces nine million more cars than it buys, which has repercussions on the Western competitive landscape", the broker summarizes in its note.

More generally, the broker supports its decision with the prospect of market share losses for both GM and Ford, a less favorable price mix and the impact of the emergence of electric vehicles on automakers' profitability.

As a result, it has lowered its recommendation on Ford from 'overweight' to 'in-line weighting', with a price target reduced from $16 to $12.

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