Shares of Ford Motor Co. slumped Monday, after Jefferies analyst Philippe Houchois downgraded the auto maker with “with a heavy heart,” just two months after he had turned bullish.
Houchois said while the change in electric-vehicle guidance when Ford reported quarterly results last week was “sensible,” the fact that it came so soon after an upbeat update on its EV business at an analyst gathering on May 22, was a “setback” that prompted him to reluctantly back away from his bullish call.
Houchois cut his rating on Ford
F,
to hold, after upgrading it to buy on May 30, citing “worse EV losses and strategic wobble.” He trimmed his stock price target to $15 from $17.
The stock shed 1.1% toward an eight-week low in premarket trading. That put the stock on track to open nearly 15% below the 10-month closing high of $15.35 on July 5.
“We appreciate efforts in disclosure and accountability and note no apparent change to midterm strategy,” Houchois wrote in a note to clients, but as the new EV strategy focuses on software and a concentrated lineup leaves a “less differentiated investment case” for the next couple years.
Separately, he reiterated his hold rating on Ford rival General Motors Co.
GM,
and kept his buy rating on Stellantis NV.
STLA,
8TI,
Also read: Ford recalls 900,000 F-150s for faulty electrical parking brakes that could activate while driving.
So far in 2023, Ford’s stock has gained 14.0% through Friday, while GM shares have tacked on 13.1%, Stellantis’ stock has run up 44.7% and the S&P 500 index
SPX,
has advanced 19.3%.
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