Ford: stock suffers from broker 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 Morgan Stanley comments, with the broker expressing concern about the deteriorating economic situation in China.


The stock closed down over more than 4%, while the S&P index was just about afloat.

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.

More generally, MS 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 downgraed Ford from 'overweight' to 'equal weight', with a target price reduced from $16 to $12.


Copyright (c) 2024 CercleFinance.com. All rights reserved.