Barclays is transferring to the sidelines on the subject of Ford Motor . The financial institution downgraded the automaker to equal weight from chubby. Analyst Dan Levy accompanied the transfer by reducing his value goal to $11 from $13, implying upside of simply 5.5%. “Contemplating Ford’s present earnings profile and valuation, it lacks a compelling case for us to stay OW-rated. Merely, with Ford going through headwinds from quantity and value in ’25, it is unclear that price actions shall be ample to offset these drags — this uncertainty leads us to step to the sidelines with an EW ranking,” the analyst wrote. F 1Y mountain F 1Y chart Levy pointed to Ford’s elevated stock ranges, which is able to take time to resolve, as one lingering headwind. “No matter how a lot Ford can justify its elevated stock, the present scenario implies that Ford may have sharp quantity headwinds in ’25 — particularly when contemplating that 2025 will see the non-repeat of stock replenishment which benefited 2024,” he wrote. “Ford’s stock difficulty, in our view, will solid an overhang on earnings till its clearly resolved, as elevated stock will preserve the chance of an hostile flip in pricing elevated.” These quantity and value headwinds might restrict any potential upside forward for shares of Ford, Levy added, particularly because the inventory’s valuation isn’t presently particularly compelling. “Barring a optimistic shock on ’25 cost-outs, we see little cause for traders to get excited on the case for Ford fundamentals,” he remarked. Traders will get a have a look at Ford’s fourth-quarter figures on Feb. 5. Shares of Ford have lagged over the previous yr, slipping slipped almost 7%, whereas the S & P 500 is up greater than 20% in that point. The inventory misplaced greater than 1% within the premarket on the again of the downgrade. Analyst sentiment on the inventory is blended. LSEG knowledge exhibits that 15 of 26 analysts masking Ford have a maintain ranking, whereas one other 5 charge it as a promote or underperform. One other six have a purchase or sturdy purchase ranking.
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