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Ford Motor (F) Downgraded To 'Hold' By Deutsche Bank On Valuation

 January 23, 2013 01:33 PM

(By Balaseshan) Deutsche Bank analyst Rod Lache downgraded rating of automaker Ford Motor Co. (NYSE: F) to "Hold" from "Buy" based on valuation, while increasing price target to $15 from $13.

Lache said the significant outperformance for Auto/Auto Parts stocks since 4Q-2012 has resulted in several companies hitting/exceeding its near term targets. This has prompted him to revisit his models looking out to 2014, as he re-assesses risk/reward over the next 6-12 months.

For Ford, the analyst sees potential upside from improving losses in Europe. He also sees potential for some upside from a pickup truck recovery in North America. But he further noted pricing may become a bit tougher in certain segments.

[Related -United States Steel Corporation (X): Small Insider Buy, Big Rewards?]

Lache cautions Ford may face the same dynamic of lowering expectations that he has recently seen play out for General Motors Co. (NYSE: GM).

The analyst said GM faces a number of significant ($800 million) North American inflationary pressures that he knows of, and some that may emerge if Ford moderates pension return assumptions as GM did-$700 million.

Ford shares are trading down 2.46 % at $13.82 on Wednesday.

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