Analysts at UBS dropped their rating and price target on the Ford stock forecast. Shares of Ford Motor Company ( NYSE:F ) plummeted in pre-market trading. The analysts cited a significant demand impact due to the impending recession in the United States as the reason for their action.
Ford Stock Forecast for Third Quarter
Before the group reports its earnings for the third quarter later this month, an analyst at UBS named Patrick Hummel downgraded his rating on the stock to sell from ‘neutral’ and reduced his price target to a new level of $10 per share. He did so, citing the possibility of a recession in the United States and the impact of a slowdown in its operations in Europe .
Ford stock forecast reported that September sales were strong last week, increasing by 16% compared to the same month last year to a total of 464,674 units. However, the company warned late in the month that clogged supply chains would cut into its bottom line for the third quarter due to “limits on the availability of certain parts as well as higher payments made to suppliers to account for the effects of inflation.”
Ford stated that as many as 45,000 vehicles missing specific components, which ultimately delayed their sale until the last quarter of the year, will remain in the carmaker’s inventory. Ford said these limits are likely to increase inflation-related supplier costs by approximately one billion dollars. Additionally, Ford stated that these ...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube
PressReach Disclaimer .