Ford Stock Falls After Jefferies Analyst Downgrade

Core Insights - Ford Motor's stock was downgraded by Jefferies from "hold" to "underperform," with a price target reduction from $12 to$9, which is below Wall Street's consensus [1][2] - The downgrade is attributed to concerns over an increasing inventory backlog and costs related to restructuring and warranty payments [1][2] - Ford's inventory has risen to 96 days despite solid sales, indicating a need for "de-stocking" [2] Inventory and Financial Health - Analysts noted that Ford's balance sheet is "robust rather than strong," suggesting potential financial strain due to restructuring and warranty claims [2] - The company faces challenges in maintaining cash for shareholders while aiming for a conservative financial profile [2] Market Performance - Year-to-date, Ford's shares have declined approximately 18%, while General Motors' shares have increased by about 40% [2]