Morgan Stanley Lowers Price Target On Ford Motor Company Over F-150 Concerns

Morgan Stanley lowered its price target from $16 to $14 on Ford Motor Company F on Wednesday and maintained its Underweight rating.

Analysts led by Adam Jonas expressed the "view that Ford's F-150 truck changeover is unlikely to go as smooth as investor's anticipate, coupled with the company's recent profit warning" compelled him to lower the price target.

According to the report, "Ford's new truck has been described to us by industry experts as one of the biggest capex projects in the history of the company." Virtually the entire manufacturing process has been "replaced, retrained or substantially augmented" with the truck to be made from aluminum rather than steel.

Jonas expressed concerns that adoption of new manufacturing techniques may result in quality problems along with a highly competitive environment, questions surrounding long-term fuel prices and whether or not the bet on aluminum will we be a "game changer."

Ford Motor Company closed at $14.10 on Tuesday, down 2.89 percent.