- Goldman Sachs downgrades Ford (NYSE:F) even though shares have slipped more than 20% during the past three months.
- The firm cuts Ford to Neutral from Buy with a $17 price target, lowered from $21, noting that the stock looks cheap but might be "dead money in the near-term" as it now expects Y/Y EPS declines until Q2 2015 since the ramp up in truck production looks like it will happen more slowly than expected, with the F-150 not producing at full capacity until H2 2015.
- Also, Goldman foresees less cash deployable to shareholders given lower EBITDA and higher capex spending relative to previous forecasts, plus annual pension contributions of $1.5B over the next two years.
- GM is removed from Goldman's Americas Conviction List but remains Buy-listed, as the firm sees some pressure on North American margins next year.