NEW YORK (TheStreet) -- Shares of Ford Motor Co. (F) are down 0.27% to $14.95 in pre-market trading after Deutsche Bank downgraded the automobile company to "hold" from "buy" with a price target of $16.
"Ford's shares are trading just 7% away from our 12-month target ($16). And we have grown incrementally more cautious about investing in U.S. Auto stocks as the market enters its 6th year of recovery, and as U.S. automakers face a number of significant prospective challenges," analysts said.
"The key near-term upside and downside risks to our target include higher and lower-than-expected pricing and/or volume on the company's new F-150, which is launching now," analysts noted.
"Other upside and downside risks include higher/lower-than-expected trajectory of U.S. demand, higher/lower European volumes, higher/lower-than-expected cost increases, potentially due to commodity inflation and/or higher/lower-than-forecast growth in engineering/R&D expenses, and potential firming/moderation in U.S. pricing environment," analysts added.
Separately, TheStreet Ratings team rates FORD MOTOR CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FORD MOTOR CO (F) a BUY. This is driven by a number of 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 attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."