Deutsche Bank Downgrades Ford (F) to Hold; $7.50 PT

Deutsche Bank downgrades Ford (NYSE: F) from Buy to Hold and lowers its price target from $11 to $7.50.

The firm said it is concerned that Ford will face structural challenges, specifically, "rising oil and raw material costs, along with an increasingly difficult regulatory environment..." Deutsche likes Ford's "major internal changes", but believes that these headwinds could seriously damage the auto industry.

Deutsche Bank estimates that rising steel prices could add about $1.5 billion to Ford's costs and lower its profits by about $1 billion.

The firm lowered its FY10 EPS estimate on Ford from $0.92 to $0.74.

Ford Motor Company designs, develops, manufactures, and services cars and trucks worldwide. [BCS]

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