Ford (F) Stock Dips on Downgrade to Sector Perform at RBC, Analyst Sees Limited Near-term Upside

January 14, 2022 7:54 AM EST
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Price: $19.96 -0.1%

Rating Summary:
    11 Buy, 16 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 15 | New: 37
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Shares of Ford Motor (NYSE: F) are down 1.3% in pre-open Friday after RBC analyst Joseph Spak downgraded to Sector Perform from Outperform while raising the price target to $26.00 per share from the prior $21.00.

The analyst sees limited near-term upside and a more challenging setup after a run-up in Ford shares in recent months. Although Spak acknowledges the early success that Ford has managed to achieve with its green transition, he believes that the company “may not have a technical disadvantage and got to market quicker.”

All in all, Spak remains “positive on ability to make "new auto" progress, but see less near-term stock upside.”

“Again, we don’t want to take anything away from the job at Ford. The company has re-rated and there could be some further potential for the company to re-rate as they continue to prove their transition. However, that could take time, so we focus a little more on numbers,” the analyst said in a client note.

The analyst sees Ford stock price consolidating around these levels for a while, hence some investors may divide to allocate capital to other auto names in the meantime.

Ford shares closed at $25.02 yesterday.

By Senad Karaahmetovic |

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