Ford Motor (NYSE: F), already troubled, is set to get off to a weak start this morning after the auto maker was downgraded this morning by broker Citigroup. The broker downgraded the stock this morning from a “hold” to a “sell” rating.
Citigroup cited several reasons for the downgrade, and in addition lowered its price target on the stock from $7.00 down to $5.50.
Here a few of the reasons for the downgrade:
- low chance that the company is going to be able to maintain market share in 2008
- continued weak housing market will apply additional pressure to the company’s heavy-duty truck lineup
- worsening credit crunch in America to apply more pressure on the Ford Credit’s earnings stream
In the premarket, shares of Ford have not been beaten up too bad, with shares dropping 1.3%, down to $6.43. We will see just how hard Wall Street punishes the company once trading gets under way shortly.
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