Ford Stock Falls After Jefferies Analyst Downgrade | Global News Avenue

Ford Motor (FShares fell on Monday after analysts at Jefferies downgraded the stock, citing inventory issues.

Jefferies cut its rating to “underperform” from “hold” and downgraded Ford price target Increased from $12 to $9. The new target is below the average of analysts tracked by Visible Alpha, which is currently above $11. Ford shares have fallen nearly 4% recently.

Analysts wrote in a note to clients that the move was “motivated by broad concerns, including stock Imminent European business strategy decisions and the widening gap between warranty and related terms hang in the balance cash outflow“.

Ford needs to ‘destock’ bloated inventory, analysts say

Jeffries analyst say when they see Ford Benefiting from the possible relaxation of emission standards under Trump’s new White House, “destocking has become a pending issue for U.S. inventories,” which have risen to 96 days despite solid sales.

Analysts called the automaker’s balance sheet “solid rather than strong” and warned of “potential claims from automakers Reorganization and warranties leave shareholders with very little cash if Ford Want to maintain a conservative financial position. ”

Jefferies keeps rival General Motors’ (General Motors) gives it a “hold” rating and a target price of $52. Its shares fell nearly 2%.

Ford shares have fallen about 18% so far this year. General Motors performed much better, rising about 40%.