Automotive giant Ford Motors saw its stock dip on Monday after it was downgraded by investment bank Jefferies.
Jefferies’ analysts downgraded Ford stock from “hold” to “underperform” due to concerns about the company’s inflated inventory. The note sent to clients also highlighted “looming strategic decisions on European presence and a widening gap between warranty provisions and related cash outflows” as part of the reason for the new rating.
“We downgrade Ford to underperform on a combination of earnings pressure and a set of challenging decisions ahead,” analysts at Jefferies explained. “We acknowledge restructuring actions could trigger positive reactions, but we are concerned about timing and the impact on the balance sheet.”
Jefferies now has a $9 per share price target on Ford stock, marking a significant slash compared to the previous target of $12.
Currently, three analysts have a “buy” rating on Ford stock, 14 analysts rate it “hold,” while four analysts have a “sell” or equivalent rating. The average price target on the stock is $11.53 per share.
After Jefferies’ downgrade, Ford stock dipped by 3.85% on Monday to close at $9.99 per share. The stock is currently 17.85% down year-to-date and 31% down from 2024’s high of $14.55 per share from July.