Goldman Sachs’ analyst Mark Delaney downgraded Ford’s price target on Thursday by 18.2% to $9 citing increased global competition, weaker consumer demand, and higher costs from tariffs.
In a new research note, the analyst admitted that the firm has been “too positive” on the stock noting that, since Goldman Sachs added Ford shares to its ‘Buy list’ six months ago, the Wall Street estimates on the company’s earnings per share (EPS) have dropped 32%.
“Over the same time period, the stock is down 10% vs. the auto OEM/supplier stocks in our coverage down 15% on average and vs. the S&P 500 down 5%,” Delaney stated.
The analyst pointed out that the impact of the 25% tariffs announced by Donald Trump last week is limited for the Detroit automaker. Ford produces mainly in the U.S. (77%), with 21% of its manufacturing in Canada and Mexico, and 2% in other regions.
“The decline in the stock was more limited than 2025 estimate reductions due to investor positioning/sentiment at the time of our upgrade, progress from the company on net cost reductions (which is a multi-year opportunity), and the potential for Ford’s US manufacturing footprint to mitigate tariff downside (or perhaps be a tailwind),” Delaney wrote.
Earlier this week, Bernstein also cut Ford‘s price target to $7.00, noting that the firm expects the company’s shares to “remain under pressure.”
Donald Trump later revealed a 90-day pause on tariffs, causing U.S. auto stocks to surge. Ford shares soared after the announcement and closed 9.3% higher.
Based on the previous closing price of $9.50, Goldman Sachs’s new price target implies a downside of 5%. The firm also downgraded Ford’s rating from Buy to Neutral.
Outlook
Delaney noted that while Goldman Sachs still sees a “long-term opportunity” on Ford, it “had a more positive view on the cyclical/margin outlook” and “thought a significant inflection in software and services profits was closer.”
Ford’s U.S. sales have dropped 1.3% year over year in the first quarter, with 501,291 units sold overall, as the brand ended production of the Ford Edge and Transit Connect models.
EV Portfolio
Sales for pickups and electric vehicles rose over the first three months of the year. Ford’s electric vehicle sales — which include both pure EVs and hybrids — increased 25.5%, with more than 73,000 units.
The company reported 22,550 pure electric vehicles sold, a 11.5% increase from the same period a year ago, while the Maverick hybrid pick-up (priced at $23,920) was the best-selling powertrain.
Ford’s 2024 sales results led the company to extend its Ford Power Promise program (that offered a free home charger and complimentary installation) until the end of March.
The offer was available to customers who purchased or leased the Ford Mustang March-E (prices start at $39,995), the F-150 Lightning pickup (from $62,995) or the E-Transit Cargo Van ($45,700).
Earlier this week, Ford’s CEO Jim Farley defended “American innovation” in a social media post on Monday, after Trump’s top trade adviser Peter Navarro attacked Elon Musk’s Tesla supply chain.
“We should never lose sight of the breadth and value of American innovation. It’s the lifeblood of our economy and extends beyond assembly. I invite anyone to Michigan to see for themselves how the best selling F-150 goes all the way from sketch pad to engineering lab to test track to rolling off the assembly line thanks to the skill of our hourly workers — all within one square mile,” Farley wrote on X.