After a big pullback in Ford Motor ‘s share worth this yr, Morgan Stanley is taking one other take a look at the auto inventory. Shares of Ford are down 40% this yr, underperforming the S & P 500’s 17.5% decline. “We imagine the ‘run-off’ worth of Ford’s genuine/emotional ICE (inner combustion engine) automobiles and fleet-oriented industrial finish markets could also be under-estimated by the market,” Morgan Stanley’s Adam Jonas stated in a notice Friday. Morgan Stanley upgraded Ford to equal weight from underweight. The agency maintained its $13 worth goal on the inventory, 4.5% larger than Ford’s closing worth Thursday. Ford’s share worth has fallen beneath Morgan Stanley’s worth goal for the primary time in over 18 months, Jonas famous. Now, Ford has “a extra balanced risk-reward skew,” the analyst stated. The decision comes after Wells Fargo this week double-downgraded Ford and Basic Motors to underweight rankings, saying 2022 could possibly be “peak earnings” for the legacy automakers. Morgan Stanley on Thursday additionally trimmed its worth goal on GM from $50 to $44, nonetheless representing 35.6% upside from the inventory’s closing worth Thursday. The agency famous the automakers are working “throughout a extremely unsure financial atmosphere and terribly excessive dispersion of outcomes.” —CNBC’s Michael Bloom contributed reporting.
Ford’s Chief Monetary Officer (CFO), John Lawler and Linda Zhang, Chief Engineer for the corporate’s All Electrical F-150 Lightning take part within the opening bell ceremony on the New York Inventory Alternate (NYSE) in New York Metropolis, New York, U.S., April 28, 2022.
Brendan Mcdermid | Reuters
After a big pullback in Ford Motor‘s share worth this yr, Morgan Stanley is taking one other take a look at the auto inventory.
