Morgan Stanley Says Ford Motor Company Earnings are Hard to Predict

According to a research report released today by Morgan Stanley, Ford Motor Company

is set to endure upfront headwinds on product-related structural costs that will limit margin growth. In the report, Morgan Stanley commented, “The 25% headline earnings miss in 4Q11 was driven by higher structural costs globally, European losses, flooding in Thailand, FX and competition in S. America. Achieving flat group profit and higher auto margins this year won't be easy, but we think Ford can just about do it. There were also some positive developments in 4Q.” Morgan Stanley maintains its Overweight rating and $18 PT on Ford, which closed yesterday at $12.29.