UPDATE: Daiwa Securities Downgrades Ford (F) to Underperform (4)

December 14, 2021 4:35 AM EST
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Price: $11.81 --0%

Rating Summary:
    11 Buy, 19 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 21 | New: 52
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(Updated - December 14, 2021 4:59 AM EST)

Daiwa Securities analyst Jairam Nathan downgraded Ford (NYSE: F) from Neutral (3) to Underperform (4) with a price target of $19.00.

The analyst comments "We downgrade our rating to 4/Underperform from 3/Neutral as we see current valuations not reflecting risks to margins during the transition to EVs from ICE vehicles and a higher interest rate environment. As depicted in chart 5 on page 5, a declining interest rate spread has historically led to multiple contraction. We attribute part of the recent uptick in Ford’s stock to the company’s 12% stake in Rivian and are raising our target to $19 from $16 to reflect the same. Our $19 target assigns equal weights to a $17 P/E-based valuation (9x 2023 EPS estimate of $1.85) and $16/share free cash flow valuation. To this average we add $2 in RIVN stake at 30% discount to current price."

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 $20.43 yesterday.


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