Ford shares are trading lower after reporting China sales earlier in the day and being downgraded by RBC Capital Markets to Sector Perform from Outperform. Ford Motors reached yesterday a new 52-week high and topped $100B of Market Cap value for the first time ever.
The Analyst Joseph Spak expect Ford’s share price to consolidate for a while after the company yesterday hit the $100B market cap level.
“We believe Ford will eventually sell down their RIVN investment (tactically) so from an enterprise value perspective we are effectively treating this as cash, however, we note that once it is actually cash and not the RIVIAN mark, that could be viewed as a negative catalyst for the shares.”
Joseph Spak, RBC Capital Markets Analyst
Spak and team point to near-term headwinds on Ford that include pricing pressure amid elevated costs and some recent weakness in shares of Rivian for which it has a sizable stake in. The Detroit automaker is reported to have a 12% stake in RIVN
Yesterday, Ford ($F) was the most traded stock of the day with 185.78M of Volume. The second position is occupied by Vinco Ventures ($BBIG) with 145M shares traded.
Recently, BofA Securities (Bank of America) analyst John Murphy raised the Ford price target to $26 a share, up from $22, citing the automaker’s production increase. In a note to investors, he called it “an encouraging proof point” in the company’s previously announced Ford+ turnaround strategy.
One day before General Motors, Ford Motors is scheduled to reveal an electric version of its Chevrolet Silverado. The pickup is expected to compete more directly with the F-150 Lightning than its GMC Hummer EV, which recently started shipping to consumers. The Silverado sales will start only next year.
