Ford Motor Company (F)

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Analyst: Ford Stock Facing an Uphill Battle
By: Schaeffer's Investment Research | January 16, 2024

• UBS downgraded Ford stock to "hold" from "buy"

• The shares are struggling early in 2024

Shares of automotive giant Ford Motor Co (NYSE:F) are 2.2% lower premarket and on track to open at $11.21 after a bear note from UBS. The Wall Street brokerage downgraded F to "neutral" from "buy," citing limited upside for the automaker as well as an uphill battle compared to its sector peers.

Coming into today, analysts were split on Ford stock, which leaves room for optimism to unwind. While eight of 16 covering brokerages recommend a "hold" or worse, the other eight rate the security a "buy" or better. What's more, price-target cuts could be on the way considering the 12-month average target price of $12.69 is a 10.7% premium to last night's close.

A shift in sentiment in the options pits could also add more headwinds. This is per F's 50-day call/put volume ratio of 2.77 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks higher than 94% of readings from the past year, implying long calls were favored over the last 10 weeks.

On the charts, Ford stock has pulled back in recent sessions, losing four of its last five. While the equity closed at breakeven yesterday, the $11.20 level saved the session's dip and it looks like it's stepping up as support once again today. Three weeks into the year, F is already down 6% and has shed 19% over the last six months.

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