Jefferies downgraded Ford (NYSE:F) from a Buy to a Hold rating and lowered their price target on the stock from $17.00 to $15.00. The decision came after Ford reported worse-than-expected losses in the electric vehicle (EV) segment and revised down their guidance for the Model e.
The analysts mentioned that while they appreciate Ford’s efforts in disclosure and accountability, there seems to be no apparent change in the mid-term strategy. The focus on Gen 2 being software-centric and a concentrated line-up makes sense, but it will only become effective in 2026, leaving a less differentiated investment case in the years leading up to that point.
Ford updated its adjusted EBIT forecast to be in the range of $11-13 billion, which surpassed Jefferies’ previous predictions of $9-11 billion. In response to the positive performance in H1 at Blue and the momentum at Pro, which outweighed the guided $1.5 billion deterioration in Model e, Jefferies raised its estimates to $11.9 billion, reflecting a 10% increase.
