Ford shares close higher on Tuesday, Piper Jaffray downgrades the stock to “Neutral”, cuts price target

May 16, 2018 7:41 am

Piper Jaffray was reported to have downgraded Ford Motor Company (F) to “Neutral” from an “Overweight” rating previously, as the firm cited a lack of compelling drivers behind the US auto maker’s revenue.

Ford shares closed higher for the second time in the past seven trading sessions on Tuesday. The stock edged up 0.36% ($0.04) to $11.22, with the intraday high and the intraday low being at $11.25 and $11.06 respectively.

In the week ended on May 13th the shares of the global automotive company lost 1.50% of their market value compared to a week ago, which marked a second consecutive period of decrease. It has also been the steepest drop since the week ended on April 22nd.

The stock has pared its loss to 0.18% so far during the current month, following a 1.44% surge in April. The latter has been a second straight month of gains.

For the entire past year, the shares of the NYSE-listed auto maker rose 2.97%, following a 13.91% slump in 2016.

“We appreciate the focus on ‘fitness,’ as well as Ford’s newfound willingness to cull less profitable platforms”, Piper Jaffray analyst Alexander Potter wrote in a client note, cited by CNBC.

“But with U.S. vehicle sales slowly eroding, we think investors are looking for more fundamental changes from Ford – and from automotive companies in general. Ford may yet capture its share of the $1T+ market for autonomous rides, but in our view, the company isn’t a leader in this market — at least not yet”, the analyst also noted.

Additionally, the investment firm revised down its price target on the auto maker’s stock to $12 from $14 previously.

“Ford’s valuation still appears low — and the stock’s 7% yield (including special dividend) — still offers downside protection — but relative to other stocks in our coverage, we are less convinced that Ford can find compelling revenue drivers to offset secular threats”, Piper Jaffray’s Potter wrote.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Ford Motor Company’s stock price, have a median target of $13.00, with a high estimate of $16.00 and a low estimate of $8.00. The median estimate is a 15.86% surge compared to the closing price of $11.22 on May 15th.

The same media also reported that 17 out of 24 surveyed investment analysts had rated Ford Motor Company’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for Ford’s stock are presented as follows:

R1 – $11.237
R2 – $11.255
R3 (Range Resistance – Sell) – $11.272
R4 (Long Breakout) – $11.325
R5 (Breakout Target 1) – $11.386
R6 (Breakout Target 2) – $11.413

S1 – $11.203
S2 – $11.185
S3 (Range Support – Buy) – $11.168
S4 (Short Breakout) – $11.116
S5 (Breakout Target 1) – $11.054
S6 (Breakout Target 2) – $11.027

By using the traditional method of calculation, the weekly levels of importance for Ford Motor Company (F) are presented as follows:

Central Pivot Point – $11.217
R1 – $11.413
R2 – $11.637
R3 – $11.833
R4 – $12.030

S1 – $10.993
S2 – $10.797
S3 – $10.573
S4 – $10.350

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