From Barchart: 2024-12-16 12:02:00

Jefferies analysts downgraded Ford (NYSE:F) from Hold to Underperform, lowering the price target to $9 from $12. Shares dropped over 3% intra-day due to concerns over inventory management, strategic uncertainties, and cost pressures impacting the automaker’s performance.

Ford’s inventory levels rose to 96 days in November, higher than competitors like General Motors and Stellantis. Despite a 15% increase in U.S. sales, sustained production could pose challenges in 2025, affecting the company’s performance.

Critical decisions loom for Ford, including potentially resizing or exiting European operations and unveiling an electrification strategy that may focus on range-extender vehicles. Structural cost issues and a significant gap between warranty provisions and cash outflows since 2020 add to the pressure.

Although Ford’s balance sheet is strong, limited flexibility remains. With potential restructuring and warranty claims, maintaining a conservative financial profile could restrict shareholder returns.



Read more at Barchart:: Jefferies Downgrades Ford to Underperform, Stock D…