Standpoint Research Downgrades Ford (F) to Hold

Standpoint Research downgrades Ford (NYSE: F) from Buy to Hold.

Ford shares are up 43% since their November 9th recommendation and beat the S&P by 4000 bps (since that recommendation).

Now trading at 6X 2004 earnings, 22X estimates for 2010 ($0.53 and rising), and a ten-year high of 0.4X sales, the shares have run their course in the near term and appear to be fairly valued.

The firm said this trade has gotten a bit crowded on the long side, and there remains uncertainty.

They do see an $18-$24 share price if we look out to 2011-2012. That being said, in the near term the risk reward is less favorable with no disappointments priced in. Anyone who got in at or below $8.00 would probably want to consider taking a trading profit here.

Consensus estimates for revenues in 2010 are actually below the 2009 figure, so the market may have gotten a bit ahead of itself here (in the near term). They would consider reinstating the recommendation on a break below $9.00 in a market correction.

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