Goldman Sachs Downgrades Ford, Shares Down 3%

Goldman Sachs pulled back its bullish stance on Ford (NYSE:F), downgrading the stock from Buy to Neutral and lowering the price target to $9 from $11. As a result, the company’s shares dropped more than 3% on Thursday.

The move reflects growing concern over the automaker’s earnings outlook and macroeconomic challenges.

The firm acknowledged that its previous optimism on Ford’s cyclical momentum was misplaced. Since being added to Goldman’s Buy list in September 2024, Ford’s projected 2025 earnings per share have been slashed by 32%, outpacing the stock’s 10% decline over the same period.

Goldman notes that while the share price has held up better than earnings revisions might suggest, this could be due to improved investor sentiment, successful cost-cutting initiatives, and Ford’s domestic manufacturing presence that may help cushion the impact of rising tariffs.

Despite some positives—such as Ford’s progress on expense management and its positioning in the U.S. for potential tariff-related advantages—Goldman now sees a tougher environment ahead. The firm points to increasing global competition, softening consumer demand, and the likelihood of escalating costs from new tariffs as factors weighing on Ford’s ability to regain traction.

Goldman still sees potential in Ford’s long-term push into software and services, but the timing of that transformation remains uncertain. Without clear signs of a near-term earnings inflection or stronger cyclical recovery, the firm has chosen to step to the sidelines, citing an unfavorable risk-reward balance at current valuation levels.