Ford Stock Slumps On UBS Downgrade to ‘Sell’; GM Rating Also Cut

Ford Motor (F) shares fell lower in pre-market trading after analysts at UBS cut their rating and price target on the carmaker, citing a strong demand blow linked to the looming US recession.

UBS analyst Patrick Hummel cut his rating on the stock to “sell” from “neutral” and took $3 off his price target to a new level of $10 a share ahead of third-quarter earnings of the group at the end of this month, citing the risk of recession in the United States and the impact of a decline in its European operations.

Ford said last week that September sales were solid, rising 16% from a year earlier to 464,674 units, but warned late last month that strained supply chains would cut into its results in third quarter amid what it called “limits on the availability of certain parts as well as higher payments to suppliers to account for the effects of inflation.”

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