Ford stock has faced its fair share of ups and downs in recent years, surging for a while based on the automaker’s heavy investments in electrification, which was once seen by investors as a wise move. However, a lull in demand has quickly turned those same folks into bears rather than bulls, including Morgan Stanley, which downgraded Ford stock recently based on fears that Chinese automakers will have a massive impact on The Blue Oval’s global business. Goldman Sachs followed that by revising its outlook on Ford stock from Buy from Neutral due to a strong recent performance by Ford Pro, but another firm has a slightly different outlook.
That firm is Bernstein, according to Investing.com, which has now downgraded Ford stock from Outperform to Market-Perform, while also adjusting its price target to $11, down from $15 per share. The investment firm blamed this change on anticipated financial headwinds and competitive pressures. Ford is facing “significant pricing and free cash flow (FCF) headwinds in 1H/25,” analysts noted, adding that decisive management action is needed to improve its outlook moving forward.
Additionally, Bernstein noted that “sluggish consumer sentiment and more aggressive pricing from competitors” means that The Blue Oval will likely have to ramp up incentives on its vehicles if it wants to maintain market share – which could place further strains on earnings. Even Ford Blue and its traditional ICE models is facing its fair share of challenges according to analysts, who note that Ford needs to reduce costs substantially to offset inefficiencies and pricing pressures.
As for EVs, Bernstein projects that Ford Model e will continue to lose money through 2025 and 2026, though it also expects that division to make improvements in regard to cost reductions. “Management should act soon and launch a full cost restructuring program,” the analysts stated. “Meaningful improvement will only be delivered by an improved platform and volume in the US,” Bernstein added, calling for Ford to update its EV strategy by early 2025 to address those concerns.
Comments
just saw a news reel that musk just bought FORD!
Fake news. Today seems to be a big day for that.
I wouldn’t touch an automaker stock these days. Nissan is nearing bankruptcy, with Mitsubishi trying to run for cover and that could just be the beginning. I knew that all that arrogance was going to backfire eventually.
Yeah. I think the automotive industry is getting teed up for some major consolidation. They have made so many bad decisions over the past few years.
Competitive concerns arise when you decide to sell only trucks, Mustangs and EVs.
FORD…. You Can NOT BE COMPETITIVE if you KEEP BUILDING Vehicles that Break Records for Being RECALLED!!!! It’s Just NOT Sustainable, And My 2022 F-150 STILL AIN’T Being FIXED Because FORD Built it so well, That the STEALERSHIPS don’t know how to FIX IT!!!!! THANKS……