Morgan Stanley has a new look at Ford Motor stock after it suffered a major pullback. Shares of Ford are down 40% this year, underperforming the S & P 500’s 17.5% decline. Morgan Stanley’s Adam Jonas stated in a Friday note that the market may underestimate the “run-off” value Ford’s genuine/emotional internal combustion engine (ICE) vehicles as well as fleet-oriented commercial markets. Morgan Stanley elevated Ford from being underweight to an equal weight. Morgan Stanley’s $13 stock price target was maintained, which is 4.5% less than Ford’s closing price on Thursday. Jonas pointed out that Ford’s share prices have fallen below Morgan Stanley’s target price for the first-time in more than 18 months. The analyst stated that Ford now has a “more balanced risk-reward ratio skew.” After Wells Fargo has downgraded Ford, General Motors and General Motors to Underweight Ratings, the analyst said. The analysts also warned that 2022 might be the peak profits for these legacy automakers. Morgan Stanley reduced its price target for GM on Thursday from $50 to $44, which still represents 35.6% upside compared with Thursday’s closing stock price. According to the firm, automakers operate in “an extremely uncertain economic environment with extraordinarily wide dispersion of results.” —CNBC’s Michael Bloom contributed reporting.
John Lawler, Ford’s Chief Financial Officer, and Linda Zhang (Chief Engineer of the All Electric F-150 Lightning), participate in the New York Stock Exchange’s opening bell ceremony in New York City on April 28, 2022.
Brendan Mcdermid | Reuters
After a significant pullback in Ford MotorMorgan Stanley has taken another look at auto stock’s share price for this year.