NEW YORK (TheStreet) -- Ford Motor's (F) - Get Report  stock rating was downgraded to "neutral" from "buy" at Goldman Sachs this morning after reporting an earnings and revenue miss for the 2016 second quarter, as well as issuing a profit warning for 2016. 

Goldman also removed Ford from Americas Buy List, or a list of stocks the firm expects to outperform.

The firm lowered the stock's price target to $12 from $15 and cut 2016 earnings estimates to $1.85 from $2.03 and 2017 estimates to $1.64 from $1.95. 

On Thursday morning, Ford reported earnings of 52 cents per share, missing analysts' estimates of 60 cents per share. 

Revenues rose 5.1% to $36.31 billion but missed analysts' estimates of $36.9 billion.

"Ford committed to full year guidance of company pretax profit and operating margin equal to or better than last year; however, company now sees risks challenging achieving guidance," the company said in its earnings statement.

With earnings in "ex-growth territory," as well as "significant" short-term headwinds and a profit warning, Goldman doesn't see the stock outperforming in the next six to 12 months.

The firm is particularly worried about pricing, saying "it seems the strong product cycle in trucks has not protected it from a more difficult pricing environment, with Ford on pace to essentially reverse much of the strong price performance of 2015."

Shares of Ford are up 0.20% to $12.73 in early-afternoon trading on Friday. 

(Ford is held in the Dividend Stock Advisor portfolio. See all of the holdings with a free trial.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate FORD MOTOR CO as a Buy with a ratings score of B-. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: F

Image placeholder title


data by