Ford downgraded to Underperform from Hold at Jefferies

Jefferies downgraded Ford (F) to Underperform from Hold with a price target of $9, down from $12, citing broad concerns ranging from an inventory overhang to looming strategic decisions on its European presence and a widening gap between warranty provisions and related cash outflows, arguing that the stock’s divergence with General Motors (GM) is set to continue. The firm continues to prefer GM, on which it retains a Hold rating and unchanged $52 price target, stating that its decision to fold Cruise into its own ADAS efforts may support GM’s near-term earnings and fund continued cash transfer to shareholders, but “leaves open the debate on re-rating.”