UPDATE: Stifel Nicolaus Initiates Ford Motor Company with Hold; Transition Underway

Stifel Nicolaus initiates its coverage on Ford Motor Company

with a Hold rating. Stifel Nicolaus comments, "Ford is a capital intensive, cyclical business that has tended to trade at substantial discounts the S&P 500 for long periods. But we think inflections occur when Ford recognizes its complacency and responds decisively by introducing products that consumers want to buy and competitors want to copy. We think two examples of prior inflections include (1) the Ford Taurus (response to rising gas prices, Japanese sedans) and (2) the Ford Explorer (response to falling gas, increasing demand for non-minivan people movers). We think another inflection may be forming (technology and move back to cars) but believe we have time to further study (1) consumers' reaction to new Ford designs, propulsion and connectivity offerings vs. peers, (2) early benefits from platform consolidation, (3) rates of demand/supply change in Europe and Asia, and (4) initial pension buyout results." F closed at $10.01 on Wednesday.