Analysts Remain Neutral On Ford Motor Company Shares Following Concerning Guidance

Monday afternoon shares of Ford Motor Company F experienced a sharp decline in share price.

The drop in share price was a result of conservative future guidance from the company presented at the investor conference.

On Tuesday, analysts at multiple investment research firms offered insight into the concerning guidance from the company.

Analysts find that the positives management outlined during the conference were overshadowed by the negative outlook, citing the new F150 design and Ford’s plans to return cash to shareholders as positives moving forward.

Moreover, analysts predict that Ford is targeting approximately $30 billion in regular and one-time dividends in the 2015-2020 time frame.

On the other hand, analysts agree that Ford weakness is broad based; more specifically, in South America and Russia. Sterne Agee analysts find that “Ford’s South American operations reported a loss of $295 million in the second quarter compared with income of $151 million in the second quarter last year.”

Following the conference, many firms adjusted the investment rating and price targets on Ford Motor Company shares.

Sterne Agee - maintained Buy rating and $20 price target .
Deutsche Bank - maintained Buy rating and lowered price target to $18 from $20.
Credit Suisse - maintained Neutral rating and lowered price target to $15.50 from $18.00.
Craig Hallum - downgraded to Hold rating and lowered price target to $17.00.