Ford Motor Co (NYSE: NYSE:F) shares are trading lower Monday morning following bearish analyst coverage from UBS.
UBS analyst Patrick Hummel downgraded Ford from Neutral to Sell and lowered the price target from $13 to $10, citing demand concerns in the face of a potential recession.
Hummel believes Ford's European business will continue to face macro headwinds in the near term. The UBS analyst also noted that Ford offers one of the least favorable risk/reward opportunities of the automakers.
"Ford has one of the least attractive risk/reward profiles amongst Western OEMs on a 12-month view, which is why we downgrade to Sell," Hummel wrote in a note to clients.
Ford recently said it sold a total of 142,644 vehicles in September, consisting of 68,299 trucks, 70,887 SUVs and 4,691 EVs. EV sales were up 197.3% on a year-over-year basis. Ford also said its EV share increased 3.1% to 7% of the total market.
"Ford's EV execution has been solid with a steep sales curve, but GM is likely to catch up fast in 2023," the UBS analyst said.
Ford is set to announce its third-quarter financial results on Oct. 26.
F Price Action: Ford has a 52-week high of $25.87 and a 52-week low of $10.61.
The stock was down 5.74% at $11.50 at time of publication, according to Benzinga Pro.
Photo: courtesy of Ford.
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