Downgrade Slows Momentum In Ford (F) Shares

After climbing higher during the first six trading days of 2010, Ford (NYSE: F) is now down two straight sessions. Today an analyst downgrade is getting the better of the red hot stock.

Standpoint Research downgraded shares of Ford today from Buy to Hold, citing the 43% run-up in the stock since they recommended buying it on November 9th. Standpoint said the trade has gotten a bit crowded on the long side, and now the shares appear fairly valued.

The firm said Ford is now trading at 6X 2004 earnings, 22X estimates for 2010 ($0.53 and rising), and a ten-year high of 0.4X sale. They said looking out to 2011-2012 EPS they do see an $18-$24 share price, but near term the risk reward is less favorable with no disappointments priced in. In covering recent insider sales at Ford, StreetInsider.com made a similar point.

Standpoint would consider reinstating their Buy recommendation on a break below $9 per share.

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