Ford (NYSE:F) stock is losing traction on Monday after UBS analyst Patrick Hummel hit the automobile company’s shares with a downgrade.
That downgrade sees Hummel drop F stock from its prior “neutral” rating to a new “sell” rating. To put that in perspective, the analysts’ consensus rating for Ford stock is “hold.” That comes from eight “buy” ratings, nine “hold” ratings, and four “sell” ratings.
To go along with that downgrade, the UBS analyst also dropped his price target for F stock to $10 per share. The prior price target was sitting at $13 per share. For comparison, the analysts’ consensus price target is sitting at $17.77. F shares also closed out Friday at $12.20 each.
Why the Bearish Stance on Ford Stock?
Investors will note that Hummel’s downgrade comes ahead of the company’s third-quarter earnings report later this month. He cites the risk of a recession in the U.S. as part of the reason for the lower rating. Also, the analyst has concerns about the company’s performance in Europe.
And it’s not just Ford stock the UBS analyst is slamming today. He also slapped General Motors (NYSE:GM) shares with a “sell” rating and a $38 price target. For the record, his prior rating for GM stock was “neutral” with a $56 price target.
F stock is down 7.3% as of Monday morning.
Investors seeking out more recent stock market news will want to stick around!
InvestorPlace is home to all of the latest stock stories traders need to know about on Monday! Among that is what has shares of Immatics (NASDAQ:IMTX) and Rivian Automotive (NASDAQ:RIVN) stock moving, as well as this morning’s biggest pre-market stock movers. You can find out more on these matters at the links below!
More Monday Stock Market News
- Why Is Immatics (IMTX) Stock Up 7% Today?
- RIVN Stock Is Down 8%. Rivian Just Recalled 13,000 EVs.
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.