Market Overview

Buckingham Lowers Ford Price Target Ahead Of Q3 Report

Share:
Buckingham Lowers Ford Price Target Ahead Of Q3 Report

Ford Motor Company (NYSE: F) could see its share price go lower as it faces continued sluggish demand overseas and new worries about slowing sales at home, Buckingham Research Group said Tuesday.

The Analyst

Buckingham Research Group’s Joseph Amaturo maintained a Neutral rating on Ford and lowered the price target from $9 to $8.

The Thesis

The lower price target reflects of more cautious expectation for EPS and cash flow in the second half of 2019 and into 2020. (See his track record here.) 

While slowing demand in China and Europe has been noted for some time, “we now have increased concern about U.S. volumes and net pricing, particularly on full size pickups and SUVs,” the analyst said. 

“We are also becoming increasingly concerned about end market demand in many of the markets (Ford) participates in.” 

Another potential overhang for Ford investors are talks with the United Auto Workers, though Amaturo said he’s not expecting a strike at Ford.

The UAW has gone on strike against General Motors Company (NYSE: GM) in a walk-off that's now in its second full week.

It appears negotiations between GM and the UAW are gaining momentum, and once a deal there is reached, Ford will likely begin negotiating in earnest with the UAW, the analyst said. 

Ford is scheduled to report third-quarter financial results Oct. 23. 

Best-Worst Case

Buckingham views the worst case scenario for Ford’s stock price as $7, with a top-end best case scenario of $11.

Price Action

Ford shares were down 2.18% at $8.96 at the time of publication. 

Related Links:

General Motors Strike In Detroit Causes Factories To Shut Down In Mexico

New Car Prices Rise An Anemic 0.6% Year-Over-Year In September As Retail Demand Weakens

Photo by Dave Parker via Wikimedia

Latest Ratings for F

DateFirmActionFromTo
Oct 2019MaintainsNeutral
Oct 2019MaintainsNeutral
Aug 2019UpgradesEqual-WeightOverweight

View More Analyst Ratings for F
View the Latest Analyst Ratings

Posted-In: automakers automotiveAnalyst Color Price Target Previews Reiteration Analyst Ratings Trading Ideas Best of Benzinga

 

Related Articles (F + GM)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
FTVMorgan StanleyMaintains70.0
ROKMorgan StanleyMaintains142.0
WWEFBN SecuritiesUpgrades100.0
SWNCapital One FinancialUpgrades
AEISCowen & Co.Downgrades57.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Mark Cuban Owns Almost $1B Of Amazon Stock, Calls It The 'Best Startup In The World'

Quality Reigns In This Dividend ETF