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Ford Selloff Tests Wall Street’s Faith in an Earnings Recovery

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Ford Selloff Tests Wall Street’s Faith in an Earnings Recovery Ford Motor Co. shares have fallen sharply as enthusiasm around its earlier rally fades and a tougher economic backdrop weighs on the auto industry. Analyst price targets, however, remain elevated on hopes that earnings will continue to improve. The stock has fallen about 30% from its May peak, when investors had pushed the shares higher on beliefs that Ford would benefit from the buildout of artificial-intelligence infrastructure.

Ford Selloff Tests Wall Street’s Faith in an Earnings Recovery Ford Motor Co. shares have fallen sharply as enthusiasm around its earlier rally fades and a tougher economic backdrop weighs on the auto industry. Analyst price targets, however, remain elevated on hopes that earnings will continue to improve. The stock has fallen about 30% from its May peak, when investors had pushed the shares higher on beliefs that Ford would benefit from the buildout of artificial-intelligence infrastructure. Since then, analysts have raised their average price target 16%, pushing the gap between Ford’s share price and Wall Street’s target to its widest in three years, according to data compiled by Bloomberg.
Ford (ORG) Earnings Recovery Ford Motor Co. (ORG) Bloomberg (ORG)
Originally published by Bloomberg Markets Read original →