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Tax-Related Miss Blamed for Decline in Ford Motor (F) Shares; UBS Cuts Price Target to $22

October 28, 2015 11:31 AM EDT
Get Alerts F Hot Sheet
Price: $12.12 -0.16%

Rating Summary:
    12 Buy, 21 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 18 | New: 17
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UBS maintained a Buy rating on Ford (NYSE: F), and cut the price target to $22.00 (from $23.00), following the company's 3Q earnings results. Ford shares fell ~5% after today’s tax-related miss.

Analyst Colin Langan commented, "The reaction likely reflects the higher tax forecast & a less-than-expected pricing benefit from new launches. We are still bullish on Ford as NA set another quarterly record and is well-positioned going into 2016; EU & SA are on-track toward profitability; and AP is weak in Q3, but expected to rebound in Q4. Ford generated $5.2bn cash YTD. With net debt at target levels and pensions close to target funding, we see increased cash returns to shareholders likely. We also foresee continued benefit over the next 12 months from launches (share & pricing), lower commodities, and increased cash return. See Figures 2 & 3 for our NA profit walks. Our FY ’15 forecast of $9.5bn is at the high end of pre-tax profit guidance of $8.5bn-$9.5bn."

For an analyst ratings summary and ratings history on Ford click here. For more ratings news on Ford click here.

Shares of Ford closed at $14.89 yesterday.



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