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Barclays cut its rating on Ford Motor Company (NYSE:F) on Thursday to Equal Weight from Overweight on concerns that supply chain issues will be a major factor this year for the Detroit automaker.
“Ford appears vulnerable to the ongoing chip shortage (which hit pickup production and likely commodity inflation) as we believe it came into 2022 with only ~ 1/3rd of its commodity needs locked in — and since then prices have spiked,” warned analyst Brian Johnson.
Macro pressures are anticipated to also add to the production headwinds to clip margins.
“Despite the selloff, we believe investors are still underestimating risks to the sector – and in particular to suppliers – from inflation and production pressures – as well as the impact of interest rate hikes on portfolio allocations,” added Johnson.
Barclays lowered its price target on Ford (F) to $17 from $23.
Shares of Ford (F) fell 1.10% in premarket trading to $15.22 vs. the average analyst price target on Wall Street of $21.16 and the 52-week trading range of $11.14 to $25.87.
