Why Ford (F) Is Sinking Today

Ford (F) is falling 5% today after British bank Barclays downgraded the automaker to Equal Weight from Overweight.

Why Barclays Cut Its Rating on F Stock

Among the factors expected to weigh on Ford’s earnings going forward are the use of inventories by its customers and price declines, according to Barclays. As a result, the bank expects analysts to lower their earnings estimates for F going forward.

An assembly line of light trucks in a state-of-the-art manufacturing plant.

Moreover, expressing skepticism about Ford’s ability to cut its costs by a large amount, Barclays predicted that the firm would generate 2025 earnings per share of $1.44. That’s well below analysts’ average estimate of $1.63.

Barclays lowered its price target on F stock to $11 from $13.

More Information About Ford

Earlier in January, Ford CEO Jim Farley proclaimed that his company is seeking to become “the Porsche of off-road” automobiles. Such vehicles accounted for 20% of the vehicles handed over by the automaker last year. He added that Ford’s first rule is to refrain from making “boring” vehicles.

Analysts, on average, expect Ford’s revenue to fall slightly to $173.3 billion this year from $176 billion in 2024.

Ford is due to report its fourth-quarter financial results on Feb. 5.

In the last three months, the shares have dropped 9%.

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Disclosure: None. This article is originally published at Insider Monkey.