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Ford cut to Neutral on dwindling F-150 EV truck demand outlook: 4 big analyst cuts

Published 12/13/2023, 08:38 AM
Updated 12/13/2023, 08:38 AM
© Reuters. — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Ford, Johnson & Johnson, Hertz Global, and Ferrari.

InvestingPro subscribers got this news first. Never miss another market-moving headline.

Ford slashed to Neutral at Exane BNP Paribas

Exane BNP Paribas downgraded Ford Motor (NYSE:F) from Outperform to Neutral with a price target of $12.00, as reported in real-time on InvestingPro.

Reports from earlier this week indicated that Ford plans to halve the production of its F-150 Lightning electric pickup truck in 2024, citing "changing market demand" as the reason. This move reflects a broader industry trend of reducing electric vehicle investments due to slower-than-expected sales growth.

Johnson & Johnson downgraded at Wells Fargo

Wells Fargo downgraded Johnson & Johnson (NYSE:JNJ) to Equal Weight from Overweight with a price target of $163.00 (from $170.00).

The company is set to report its Q4/23 earnings next month. Street estimates stand at $2.37 for EPS and at $21.01 billion for revenues.

Hertz Global cut at Oppenheimer

Hertz Global (NASDAQ:HTZ) shares fell more than 1% pre-market today after Oppenheimer downgraded the company to Perform from Outperform.

The analysts expect 2024 to be a transitional year for Hertz. The company is anticipated to encounter multiple challenges, including significant issues with its EV initiative, higher vehicle interest expenses, and higher DPU. Consequently, the estimated EBITDA for 2024 has been reduced from $1.215B to $823M.

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Ferrari hit with two downgrades

Ferrari (NYSE:RACE) shares fell more than 1% pre-market today after the company received downgrades from two Wall Street firms.

HSBC downgraded the company to Hold from Buy with a price target of €340.00 (from €325.00). The analysts acknowledge the strength of Ferrari's performance, noting that their margin improvement and cash generation are surpassing mid-term goals. The 2024 estimated EBIT is already at the lower end of the 2026 targets. However, these targets are not expected to be revised until 2025. This leads to a reduced likelihood of mid-term earnings upgrades and unexpected positive results.

The analysis also pointed out that historically, Ferrari has shown minimal earnings surprises in the fourth quarter. This is attributed to their strategy of managing deliveries to meet or slightly exceed guidance. Given that the 2023 EBIT is already 2% above guidance, the potential for short-term earnings surprises seems limited.

Meanwhile, Exane BNP Paribas downgraded Ferrari to Neutral from Outperform with a price target of €367.00.

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