Ford Motor stock downgraded at CFRA on valuation, EV production ramp-up issues

CFRA analysts lowered their recommendation on Ford Motor (NYSE:) stock to Hold with the price target of $16 per share still maintained.

Ford reported a 16.1% increase in U.S. auto sales for the last month, pushing the total Q2 sales to 531,662 units, up 9.9% year-over-year. The Q2 car sales performance was better than expected as analysts were looking for sales of 524,000.

However, the analysts flag “sluggish” F-150 Lightening production numbers with Q2 sales of this popular EV model up just 4% compared to Q1.

“We think EV production ramp-up issues are likely to be widespread among traditional automakers as they attempt to execute aggressive growth plans. After a 30% YTD run-up for the stock, we lower our rating to Hold, but continue to view Ford’s dividend yield as compelling,” they added in a note.

Ford stock fell 2.4% on Thursday.