Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Ford down after Jefferies downgrade stock to ‘underperform’

admin by admin
December 16, 2024
in Stock
0
Ford down after Jefferies downgrade stock to ‘underperform’
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Investing.com — Ford Motor Company (NYSE:F) shares were down more than 3% before the opening bell on Monday, after Jefferies downgraded the American carmaker to “underperform” from “hold” on concerns over inventory build-up, strategic uncertainty in Europe, and a widening gap between warranty provisions and cash outflows.

The brokerage cut its price target on Ford to $9 from $12.

“De-stocking has become an overhang,” Jefferies analysts wrote, noting U.S. inventory levels had risen to 96 days in November. 

Jefferies remains cautious about Ford’s ability to address a cumulative $8.5 billion gap between warranty provisions and cash outflows since 2020.

While Ford’s balance sheet is “robust,” the analysts warned that potential restructuring and warranty claims could constrain cash available for shareholders.

In contrast, Jefferies retained a “hold” rating on GM with a price target of $52.

“We keep our preference for GM but stay at Hold; the decision to fold Cruise into its own ADAS efforts may support GM’s near-term earnings and fund continued transfers of cash to shareholders, but leaves open the debate on re-rating,” analyst added.

Jefferies noted that the U.S. market remains a “protected oasis” amid global EV policy shifts and regulatory challenges, with stable profits concentrated among GM, Ford, Stellantis (NYSE:STLA), and Toyota Motor (NYSE:TM) Corp.

However, slowing cash generation as dealer stock rebuilding ends could affect the industry’s overall momentum.

 

This post appeared first on investing.com

Previous Post

As Bolivia’s big state economic model slowly implodes, fear of ‘total crisis’

Next Post

US stocks to rally into year-end but correction is ‘likely early in the New Year’: Fairlead

admin

admin

Next Post
US stocks to rally into year-end but correction is ‘likely early in the New Year’: Fairlead

US stocks to rally into year-end but correction is ‘likely early in the New Year’: Fairlead

Trending News

EU to investigate Liberty Media’s MotoGP acquisition

EU to investigate Liberty Media’s MotoGP acquisition

December 12, 2024
Trump holds talks with top CEOs amid low confidence, recession risks

Trump holds talks with top CEOs amid low confidence, recession risks

March 11, 2025
Troubled Victoria’s Secret stock could surge by 72%

Troubled Victoria’s Secret stock could surge by 72%

October 13, 2024
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.