Before U.S. President Donald Trump took office in January and imposed 25 percent tariffs on imported automobiles earlier this month, Ford stock was already being downgraded by various investment firms over concerns pertaining to high inventory levels and soaring warranty costs. Now, with these new tariffs in place, Ford stands to be impacted in some ways, perhaps in a significant manner. As such, it isn’t terribly surprising to learn that another investment firm has now opted to downgrade its price target on Ford stock, too.
That firm is Barclays, according to TipRanks, which has downgraded its price target for Ford stock from $10 to $8, all while maintaining its Equal Weight rating on those same shares. As has been the case with its peers, Barclays cites uncertainties pertaining to tariffs as the chief reason behind this move, which only further compounds concerns revolving around the economy and consumer sentiment in general.
Barclays is just the latest investment firm to downgrade its outlook and/or price target for Ford stock over these same reasons, however. Earlier this week, Deutsche Bank opted to maintain its “Hold” rating on Ford stock, but also, downgraded its price target from $9 to $7. Analysts did admit that impending tariffs will likely cause many consumers to head out and purchase vehicles as a way to avoid paying more in the short term, but in the latter half of the year, rising prices could cause a large downturn in that regard.
In late March, JPMorgan lowered its price target for Ford stock from $13 to $11 per share largely due to the threat of tariffs, and it was followed by a number of others shortly thereafter. Earlier this month, Bernstein cut its price target for Ford stock by $2.40 to $7, citing concerns pertaining to increased costs stemming from tariffs, coupled with worsening consumer sentiment.
Piper Sandler also recently revised its price target for Ford stock – down from $13 to $9 – though it left its neutral rating intact, moves that stemmed from concerns pertaining to tariffs, as well as the company’s financial performance, market challenges, soaring warranty costs, and slow EV sales across the globe. Goldman Sachs jumped on this bandwagon as well, downgrading its outlook on Ford stock from Buy to Neutral and citing global competition, declining consumer sentiment, a slow ramp up in software and services, and tariff burdens as the reasoning behind that decision.
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