Credit Suisse Lowers Price Target On Ford, Notes Margin Pressure And Increasing Rates

On Sunday night Credit Suisse CS cut the price target on Ford Motor's F from $15.50 to $13.50 while maintaining a Neutral rating. Analyst Daniel Galves noted a decline in future margins and the potential monthly impact to payments from borrows when the Federal Reserve raises rates. Speaking to the current condition inside Ford, Credit Suisse says the strength in price for Large Pick-Ups has masked the destruction to prices on Fiesta, Focus, Fusion, and Escape.

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Credit Suisse estimates the yield on the 5-Year Treasury could gain 250 basis points from mid-2015 to the end of 2016.  This move in the yield could "dive up to a $32 increase to average monthly payment (7%) which would take a $1,900 selling price reduction to fully offset (7%)."

On Friday shares of Ford closed down roughly 4 percent to $13.84