By Sam Boughedda
Investing.com — Ford Motor (NYSE:F) stock has stayed resilient, climbing just over 0.8% after initially sliding at the open, despite a downgrade by Nomura on Tuesday.
In a note to investors, Nomura analyst Anindya Das downgraded Ford to reduce from neutral with a price target of $13.
“Ford’s stock is up 104% year-to-date. By comparison, Ford’s peer group (comprising GM, Stellantis, Toyota, Honda, and Nissan) is up 23%, while the S&P 500 is also up 23%,” said Das.
The analyst continued by saying that the market has been enthused and justified in by several factors such as the company’s success in offsetting volume and market share losses and management’s progress with turning around Ford’s international operations.
“However, we find it difficult to justify the current premium valuation over peers, especially after Ford’s weak wholesales outlook for 2022 (+10% y-y) due to difficulty in securing sufficient chip supplies,” added Das.
“This implies Ford’s 2021 wholesales would still be ~17% lower than 2019-levels. In contrast, Ford’s Asian peers are already indicating significant production normalization in November globally, which would continue thereafter,” the analyst said.
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