Ford investors ‘may struggle to see silver linings’ from Q3, says Morgan Stanley

Morgan Stanley says investors “may struggle to see the silver linings” from Ford’s (F) Q3 report and thinks FY25 consensus will likely continue to fall as Ford needs to show more progress on factors within its control, specifically inventory reduction and cost improvement. While the firm notes that its current forecast for FY25 adjusted EBIT of $9.8B is only marginally below the FY24 revised $10B guidance “for now as we continue to review our assumptions,” the firm adds that it sees scope for FY25 consensus expectations, currently for flat profit, to “potentially fall materially” given “bloated inventory, competitive price pressure and continued elevated costs.” The firm has an Equal Weight rating and $12 price target on Ford shares.