Ford: shares drop on broker downgrade
(CercleFinance.com) - Ford shares fell on Wednesday after Morgan Stanley downgraded its rating on the US carmaker to "equal weight" from "overweight", saying that electric vehicles pose "both an opportunity and a threat".
"We think Ford has the sense of urgency on EVs, but the strategy is still not full clear to us", the broker said in a note, maintaining its nine-dollar target price for the share.
"We believe it can ultimately transition to EV's and can leverage strong fleet/commercial positions (F-150, Transit vans) but faces substantial headwinds on high margin ICE products that face de-adoption", it added.
Ford shares are currently down 4.5% on the New York Stock Exchange.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"We think Ford has the sense of urgency on EVs, but the strategy is still not full clear to us", the broker said in a note, maintaining its nine-dollar target price for the share.
"We believe it can ultimately transition to EV's and can leverage strong fleet/commercial positions (F-150, Transit vans) but faces substantial headwinds on high margin ICE products that face de-adoption", it added.
Ford shares are currently down 4.5% on the New York Stock Exchange.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.