Ford Motor Company (F) - Bear of the Day

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We are disappointed with Ford Motor Company's ( F ) higher structural and commodity costs. The automaker expects to lose between $500 million and $600 million in 2012 in Europe, owing to the ongoing debt crisis.

Despite exceeding the Zacks Consensus Estimate by $0.04 per share in the first quarter of 2012, the company's profits fell sharply by 20% to $1.6 billion. Profits from all the operating regions declined except North America. Revenue in the quarter slipped 2% to $32.4 billion, barely surpassing the Zacks Consensus Estimate.

As such, we have downgraded our recommendation on the stock to Underperform from Neutral and set a target price of $8.75. This valuation is derived at 6.5x 2012 EPS, and reflects our recommendation downgrade.
 
FORD MOTOR CO (F): Free Stock Analysis Report
 
FORD MOTOR CO (F): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

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