Ford Shares Trade Lower Following 15% Price Target Cut from Morgan Stanley
Shares of Ford (NYSE: F) are reacting to a price target cut from $20 to $17 by Morgan Stanley, trading down 1.6 percent to $15.83. The firm maintained an Overweight rating on the stock.
Analyst Adam Jonas reduced the 2015 earnings per share forecast by 12 percent from $2.08 to $1.83 for three reasons:
- Unanticipated headwinds in the key emerging market regions in Latin America.
- Increased competition in the U.S. market. The analyst expects “vastly improved cars on U.S. shores from 2015.
- Lightweighting of F-Series pickup applies up-front pressure to North America margins.
Jonas believes Ford will outperform broader auto coverage, “which on average has 7% downside to [the analyst's] price targets.”
The shares may also be trading in sympathy to General Motors, which was hit with another negative headline and a downgrade from Jonas.
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