Ford Shares Trade Lower Following 15% Price Target Cut from Morgan Stanley

Shares of Ford 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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorAnalyst RatingsMoversAdam JonasMorgan Stanley
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!