Ford’s stock price declined following a downgrade by Jefferies analysts, who cited inventory concerns and strategic challenges.
On Monday, Ford announced that Jefferies had lowered its rating and price target from $12 to $9. This new target falls below the average estimate of $11 from analysts tracked by Visible Alpha.
Several factors contributed to the downgrade, including excess inventory levels, uncertainties surrounding Ford’s European operations, and a growing discrepancy between warranty provisions and cash outflows.
Jefferies analysts acknowledged that Ford may benefit from relaxed emissions standards under a Trump administration. However, they pointed out that U.S. inventory has risen to 96 days, an inflated level that poses a risk despite strong sales performance.
The analysts emphasized that Ford must take action to address its excessive inventory.
Ford’s stock price recently fell by 4.19% and is down approximately 18% year-to-date.
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