How quickly analysts can change their outlook on a company, especially after weaker than expected earnings results as in the case of Ford Motor (NYSE:F), which had its EPS estimates and price target on them cut be Morgan Stanley (NYSE:MS).
Morgan Stanley analyst Adam Jonas said, "N. America accounted for most of the 4Q shortfall, suffering a sharp increase in launch and engineering costs as Ford brings to market a very high volume of new models. While we underestimated the inflation in launch-related costs, we do not believe the 2.4% global auto division margin Ford produced in 4Q accurately reflects the company’s fundamental position. More perplexing to investors, in our view, was how margins were cut in half despite sales that surprised positively, up 14% sequentially. This is an industry where if you get the top-line right, you usually get your earnings right. Frequently, as last week showed, this is not the case."
Jonas lowered his EPS estimate for full year 2011 from $3.00 to $2.40.
Ford was trading at $15.53, falling $0.36, or 2.23 percent, as of 12:57 PM EST. Morgan Stanley lowered their price target on Ford from $23 to $21.
Wednesday, February 2, 2011
Ford's (NYSE:F) EPS, PT Slashed by Morgan Stanley (NYSE:MS)
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13 comments:
these stupid analysts will lower the rate if the share fall down and they increase the rate if the share go up. they can change their mind and rating anytime however they want.
Agreed with above post.
Who would listen to Morgan Stanley anyway!!!!! They are probably putting this crap out to drive the stock down so they can buy a ton of it.
If I were an analyst everyone listened to and I knew that my opinion would drive a stock up or down you bet I would be doing the same thing... I think Ford is going to $50, now go up!!
I agree with all the above, these analyst do what they want and the SEC is stupid enough to let them
Buy American, Drive American, Henry Ford would be proud, after all he is the father of the automobile. morgan stanley get real!
If these ASSHOLE analyst were that smart they would be working as ENGINEERS AT FORD!!! After all didn't these knuckle heads on Wall St get us in this MESS!!!
ANALyst estimates/price targets are sooooo reliable... not.
Buy Buy Buy!!!...and if it goes down, Buy Buy More!! This crap is like a bump in the road. Ford has done some impressive things in the last couple years and when there are problems they don't ignore them.
How in GOD's name can these misanthropes be allowed to provide nothing less than a play-by-play color report. A huge percentage of these fools have some vested interest in the stocks they tout or rag. SEC where the heck are you?
Agreed with first post, Stupid Analyst, they just can said what they want to say..they NEVER involved in the company..
These analysts work for the same companies that needed the bailouts from the government. its the same hype that got the economy in trouble in the first place. Forget the government looking into it, they were saved the last time.
I'm trying to understand how increasing engineering and launch costs in a competitive market is a bad thing. Driven a Ford lately? I have and I'm impressed.
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