UPDATE: Credit Suisse Reiterates On Ford On US Pricing Concerns

In a report published Monday, Credit Suisse analyst Daniel Galves reiterated a Neutral rating on Ford Motor Company F, but lowered the price target from $15.50 to $13.50. In the report, Credit Suisse noted, “Ford commented that weak car pricing was expected to continue. While the share price action was a bit surprising, we see concerns as justified: 1) Pricing on Fiesta, Focus, Fusion, Escape was down 5% in 3Q14, a potential $1bn annualized headwind. This is currently being offset by Large Pickup pricing, but that offset is likely to diminish given Ford comments around lower F150 margin in 2015; 2) Slowing SAAR growth; 3) Recent weakness in used pricing, particularly the young off-rental vehicles (down 3%-4% YOY in Sept) that directly impact new pricing; 4) Weak Yen likely to swing competitive dynamic back towards Japanese OEM's; and 5) Potential headwinds from normalization of rates beginning in mid-2015.” Ford Motor Company closed on Friday at $13.78.