Even 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, among others. Now, with these new tariffs in place, Ford stands to be impacted in some ways, perhaps in a significant manner. Thus, it’s also not surprising to learn that another investment firm – Bernstein – just opted to downgrade its outlook on Ford stock, too.
According to CNBC, Bernstein analyst Daniel Roeska has downgraded his outlook on Ford stock, cutting his price target by $2.40 to $7 – around 19.4 percent lower than what the share price ended at on Tuesday. Roseka slashed earnings per share expectations by around 41 percent for 2025 and 36 percent in 2026, citing concerns pertaining to increased costs stemming from tariffs – some of which are unknown at the moment and could vary greatly – coupled with worsening consumer sentiment.
“It is time to confront some hard truths, once more: vehicle tariffs have commenced, and parts tariffs are likely to follow within a month. We find significant downside not priced by the market yet,” Roeska wrote in a note to clients. “As tariff pressures intensify and consumer sentiment weakens, we expect Ford’s shares to remain under pressure.” Just last month, Piper Sandler analyst Alexander Potter also revised that firm’s price target for Ford stock – down from $13 previously 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.
Ford has resigned to the fact that it will have to pay tariffs on imported vehicles and major components, but has been lobbying the Trump administration to reduce levies or remove them completely from low-cost parts made in countries with cheaper labor – something that it claims would add billions in costs.
Comments
Tarrifs aren’t Ford’s problem. Poor quality, = high warranty costs. Plus MSRP prices are too high and dealers aren’t making deals. = High inventories. We dumped our Ford stock several years ago. It never made any money then and will not now.
Automakers are all headed to penny stock territory once the impact of the tariffs shows up.
If you’ve watched Ford stock history, over the years, you quickly realize it has always been a terrible investment.