Stock Market News

Ford down after Jefferies downgrade stock to ‘underperform’

2024.12.16 08:40

Ford down after Jefferies downgrade stock to ‘underperform’

Investing.com — Ford Motor Company (NYSE:) shares were down more than 3% before the opening bell on Monday, after Jefferies downgraded the American carmaker to “underperform” from “hold” on concerns over inventory build-up, strategic uncertainty in Europe, and a widening gap between warranty provisions and cash outflows.

The brokerage cut its price target on Ford to $9 from $12.

“De-stocking has become an overhang,” Jefferies analysts wrote, noting U.S. inventory levels had risen to 96 days in November. 

Jefferies remains cautious about Ford’s ability to address a cumulative $8.5 billion gap between warranty provisions and cash outflows since 2020.

While Ford’s balance sheet is “robust,” the analysts warned that potential restructuring and warranty claims could constrain cash available for shareholders.

In contrast, Jefferies retained a “hold” rating on GM with a price target of $52.

“We keep our preference for GM but stay at Hold; the decision to fold Cruise into its own ADAS efforts may support GM’s near-term earnings and fund continued transfers of cash to shareholders, but leaves open the debate on re-rating,” analyst added.

Jefferies noted that the U.S. market remains a “protected oasis” amid global EV policy shifts and regulatory challenges, with stable profits concentrated among GM, Ford, Stellantis (NYSE:), and Toyota Motor (NYSE:) Corp.

However, slowing cash generation as dealer stock rebuilding ends could affect the industry’s overall momentum.

 



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,589.41 5.45%
ethereum
Ethereum (ETH) $ 3,490.95 3.95%
tether
Tether (USDT) $ 1.00 0.13%
xrp
XRP (XRP) $ 2.32 6.33%
bnb
BNB (BNB) $ 695.05 2.23%
solana
Solana (SOL) $ 196.07 6.31%
dogecoin
Dogecoin (DOGE) $ 0.333876 6.77%
usd-coin
USDC (USDC) $ 1.00 0.24%
staked-ether
Lido Staked Ether (STETH) $ 3,481.74 3.78%
cardano
Cardano (ADA) $ 0.935789 5.22%
tron
TRON (TRX) $ 0.258349 3.47%
avalanche-2
Avalanche (AVAX) $ 41.14 11.02%
chainlink
Chainlink (LINK) $ 24.50 7.41%
the-open-network
Toncoin (TON) $ 5.78 5.75%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,138.01 5.14%
shiba-inu
Shiba Inu (SHIB) $ 0.000023 6.60%
sui
Sui (SUI) $ 4.59 7.70%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,438.37 5.56%
hedera-hashgraph
Hedera (HBAR) $ 0.32518 20.52%
stellar
Stellar (XLM) $ 0.403839 13.26%
polkadot
Polkadot (DOT) $ 7.54 7.40%
hyperliquid
Hyperliquid (HYPE) $ 29.36 5.30%
weth
WETH (WETH) $ 3,487.31 3.88%
bitcoin-cash
Bitcoin Cash (BCH) $ 475.28 7.96%
leo-token
LEO Token (LEO) $ 9.48 0.44%
uniswap
Uniswap (UNI) $ 14.50 5.12%
litecoin
Litecoin (LTC) $ 109.36 7.50%
pepe
Pepe (PEPE) $ 0.000019 6.70%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,681.40 3.95%
bitget-token
Bitget Token (BGB) $ 4.90 20.27%
near
NEAR Protocol (NEAR) $ 5.56 7.82%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.31%
aave
Aave (AAVE) $ 378.08 8.23%
aptos
Aptos (APT) $ 9.76 5.16%
internet-computer
Internet Computer (ICP) $ 11.17 9.70%
usds
USDS (USDS) $ 1.00 0.54%
crypto-com-chain
Cronos (CRO) $ 0.16529 5.35%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.529542 10.50%
vechain
VeChain (VET) $ 0.053648 16.38%
ethereum-classic
Ethereum Classic (ETC) $ 28.23 6.98%
mantle
Mantle (MNT) $ 1.24 5.32%
render-token
Render (RENDER) $ 7.87 10.28%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.42 10.39%
bittensor
Bittensor (TAO) $ 498.88 8.66%
mantra-dao
MANTRA (OM) $ 3.79 6.83%
whitebit
WhiteBIT Coin (WBT) $ 24.82 1.75%
monero
Monero (XMR) $ 191.06 0.40%
arbitrum
Arbitrum (ARB) $ 0.827083 7.22%
dai
Dai (DAI) $ 1.00 0.03%
filecoin
Filecoin (FIL) $ 5.54 12.03%