Shares of Ford Motor (NYSE:F) experienced a drop of more than 2% intra-day today. This decline followed a decision by UBS to downgrade the Detroit-based automaker’s shares to a Hold rating from Buy, citing a view that the stock is now “more fairly valued.”
UBS analysts, in their note, expressed a tempered outlook for Ford, indicating less optimism for the company’s financial performance in the coming years. They specifically mentioned that they foresee more limited upside to Ford’s earnings estimates for 2024 and 2025 than previously anticipated.
In terms of specific figures, UBS predicts Ford’s earnings per share (EPS) for fiscal years 2024 and 2025 to be $1.70 and $1.65, respectively. These projections reflect a negative deviation of 4% and 12% from the current consensus.
The downgrade reflects broader industry challenges that Ford, like other automakers, is facing. These challenges include issues related to pricing, affordability, labor, and the need for significant investment, particularly in the context of transitioning to electric vehicles.