JP Morgan Cuts Ford Rating
JP Morgan downgraded its investment rating on Ford Motor (F ) to market performer from long term buy. On May 22, the auto giant offered to replace up to 13 million Firestone tires on its vehicles at a cost to the company of $3 billion. Analyst David Bradley says recent events threaten the company's flight-to-quality status. Bradley says the tire recall was much costlier than expected. The analyst says he worries about continuing weak market share performance and a softening in the European car market. With the recall -- and the cessation of Ford's share repurchase program -- Bradley thinks the stock is more likely to underperform than outperform its peers over the near term. At a minimum, he expects the stock to trade sideways over the next several months.
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