Ford Downgraded - Analyst Says Its Gen 2 EV Lags Compared To General Motors
Portfolio Pulse from Nabaparna Bhattacharya
UBS Global Research analyst Joseph Spak downgraded Ford Motor Company (NYSE:F) to Neutral from Buy, maintaining a $12 price target. Spak cited limited upside to Ford's estimates for 2024 and 2025, noting that General Motors Company (NYSE:GM) may have more earnings upside due to its earlier start with the Ultium platform for EVs. Ford's Gen 2 EVs are not expected until 2025/26, and the company faces a significant labor cost headwind from the new UAW contract. Ford's stock price dropped 2.31% to $11.19.
January 17, 2024 | 7:25 pm
News sentiment analysis
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POSITIVE IMPACT
General Motors may experience a positive sentiment as the UBS analyst highlighted its potential for more earnings upside compared to Ford, due to its earlier start with the Ultium EV platform.
While not directly upgraded, GM is mentioned favorably in comparison to Ford, which could lead to positive investor perception of GM's near-term prospects, especially in the EV space.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Ford downgraded to Neutral by UBS analyst, with no change to the $12 price target. The company faces challenges with its Gen 2 EV launch timeline and increased labor costs, potentially impacting earnings.
The downgrade by a prominent analyst can negatively affect investor sentiment in the short term, especially with concerns over EV competition and labor costs. The unchanged price target suggests limited growth potential, which may lead to a bearish outlook.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90