The firm also stated that Ford's stock should drop another 11% over the next 12 months.
"We believe a decline in used car values may occur a bit later than consensus, but could also prove to be far more severe," Morgan Stanley analyst Adam Jonas wrote. "We see Ford as particularly vulnerable given the size of its Finco program relative to other OEMs."
(Ford stock is held in the Dividend Stock Advisor portfolio. See all of the holdings with a free trial.)