Following a period when it surged in value thanks to exciting new product launches and big EV investments, Ford stock began to stumble last year amid skyrocketing commodities costs, inflation in general, and fears that a recession was looming. Then, in October, the investment bank UBS Group AG downgraded Ford stock from “Neutral” to “Sell” amid rising concerns over a recession not only in the U.S., but also in Europe. Prior to revealing its disappointing year-end financial results last week, Ford stock remained rather stable, but has fallen double digits in the days since, and now, Deutsche Bank has also downgraded its outlook as well, according to Seeking Alpha.
After Ford stock slid 10 percent following its earnings call, Deutsche Bank downgraded it from “Hold” to “Sell,” while also cutting its price target from $13 per share to $11. Meanwhile, the consensus rating across all investment banks has shifted downward as well, but to “Hold” rather than “Sell.”
“We are downgrading our Ford rating to Sell, following its large Q4 ’22 miss and new aggressive 2023 guidance, which in our view showcase considerable operational shortfalls and suggest meaningful downside risk to earnings trajectory,” said Deutsche Bank equity analyst Emmanuel Rosner. “Management blamed supply chain conditions but also recognized its suboptimal material economics and poor operational execution. We also worry about its limited visibility into its supply base.”
This increased pessimism from Wall Street isn’t surprising given the fact that FoMoCo “left about $2 billion of profit on the table due to cost and especially continued supply chain issues,” in the words of CEO Jim Farley, who was admitted “frustrated” by the automaker’s performance. However, Farley also noted that the automaker is “committed companywide to implement a lean operating system that will scrub billions of dollars of waste out of our company.”
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Comments
This was inevitable and probably a safe move because if Deutsche didn’t downgrade people would question quality of their analysis.
This all due to a leadership failure. Maybe Jim is too distracted with racing Formula 1 . It’s time for Ford to bring in new leadership.
Maybe you are just silly.
Definitely ‘failure by Farley’ due to his failed EV focus. One of the things discussed was how there is a lack of interest in EVs, yet Farley tried to pursue them and it cost Ford dearly. Toyota stated again last week they won’t focus on EVs due to customers not demanding them, and they are light years ahead of Ford in every category. Toyota is making crazy money and their stock value is strong. Majority of Americans simply don’t care for EVs. Like they say, go EV go broke.
Oh here’s VinceR, who’s been here before with almost the exact nonsense before, just another of the K-street troll team with the scripted talking points, they just love to push their big lie …
I’d be grateful if the troll team dolts could back up their repeated claim that TMC claims no focus on EV’s with citations. I’ve asked several times but they don’t bring them.
I bring citations about how Toyota is presently mispositioned for the next couple years and scrambling to recover:
ft. com/content/2edc2630-a0b6-4b45-8e18-ac3917a68eed
freep. com/story/money/cars/mark-phelan/2022/12/24/toyota-prius-2023-hybrid/69730040007/
How soon before the stockholders take over and do a major shakeup?
Sorry to disappoint you but it’s going to be a while no matter what seeds of revolt you try to plant.
I’m a stockholder and already starting the process. 😉 My “garden” is starting to sprout..
No surprise. This is exactly what happens when a company is run with ideals instead of hard numbers. Someone mentioned Toyota (good example), they let numerical data guide them and are doing a stellar job. We don’t care about EVs, actually, America is the opposite. Just look at all the big trucks and SUVs Americans drive, foreigners can’t wrap their heads around it (welcome to freedom). Farley is one of those fools who uses Communist phrases like, “you don’t ‘need’…” Americans love their vehicles and the numbers showed during their busted earnings report that EVs are a bust. Who wants to pay $20K+ for a new replacement battery that the industry says “should” last 10 years, no one does.
Oh now we have treynoldBS coming in with a melange of the old scripted nonsense with a dash of nationalist fervor and culture wars gobbledegook for gullible fools.
TL:DR Toyota is scrambling to catch up, now developing a corporate BEV platform, because Mr Toyoda slept on a bed of hybrid laurels. (Mr Toyoda got kicked out of CEO job up to Chairman, because what else can you do with a dynastic scion?)
Here’s just one of several pieces that backs up the present back footed state of Toyota’s situation:
ft. com/content/2edc2630-a0b6-4b45-8e18-ac3917a68eed
Jimmy is “frustrated”. I feel bad for him. I also feel bad that, after more than a decade the dog of a stock I own has a 3.6% rate of return.
I don’t feel bad about, when they finally do carry him out on a rail, he’ll float away with a 7 figure parachute.
Oh K- street BSob, truly LoL at your faux outrage complaining about a stock that you claim to own that in fact outperformed a good portion of the S&P even in a difficult 2023.
In addition, you had opportunities to sell when it was trading at very big prices but you didn’t?
Bad faith BSob might best blame himself.
Growing up with Fords and Mustangs this is painful to see someone so misguided by unicorn EVs that he is single handedly destroying Ford. I live in a progressive area and people don’t want EVs, as Farley is learning the hard way. Not to mention under him Ford has to set aside the highest amount of money for warranty issues out of any other industry in the world (electronics, aviation, appliances, computers, etc, etc). The truck division at Ford is the only competent area, whoever runs the truck side should be CEO instead. Farley deserves all of this.
LoL “progressive area” K-street BS detector swung so hard it launched the needle past the Chinese balloon.
Your troll team has talked about warranty provision set asides before but with no citations or context.
Ford has historically high warranty costs, Farley himself has even transparently said this, but the framing you use is nonsense exaggeration without context and citations.
The family runs the company, Farley is along for the ride and to collect a paycheck. If he hits on something that drives shareholder value up he will stay longer but at this point they’ll replace him due time.
LoL oh BSteve, given how hard you folks are running at Farley these last 2 years, the patrons of your K-street troll team must be near apoplectic at the thought of Ford+ gaining traction in the next 2 years as the older troublesome platforms are phased out and Ford’s 2G EV platforms achieve economies of scale.
Best part is even if you knock him out, Ford’s not going back to ICE.
Ford will deliver 2G BEV at scale at the same time Toyota and other stragglers are bringing their 1G BEV cars online.
I’ve talked a couple family members out of an EV simply by sending them articles on how much replacement batteries cost. The NTSB Chair’s recent statement about EVs being dangerous due to their higher weight helped too. This CEO looks like a complete fool for pursuing unpopular electrics.
Then you’ve done your family members a disservice because the need for most vehicles to have replacement batteries isn’t really a thing.
Batteries that fail in the first 8 to 10 years are covered by warranties, and it is unlikely for batteries to fail after that.
But then again vincentBSmith, you’re tapping on some pretty tired scripted talking points from the K-street crowd.