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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