Ford, GM shares fall after Morgan Stanley analyst downgrade

Magna International

25/09/2024 17:57

NEW YORK, Sept 25 (Reuters) - Shares of Ford Motor  F.N 
and General Motors  GM.N  fell about 5% on Wednesday after
Morgan Stanley analysts downgraded the U.S. automakers, citing a
challenging market environment marked by falling prices and
growing competitive threats particularly from China.
    Legacy U.S. automakers are faced with high inventories,
falling prices, and signs of weakening consumer demand even as
car manufacturers from Japan and South Korea, as well as
electric vehicle makers, increasingly gain market share, Morgan
Stanley analysts led by Adam Jonas said in an investor note. 
    Competitive pressure from China, which produces 9 million
more cars than it buys, is also weighing on U.S. car makers, the
analysts said.
    Ford was downgraded to "equal weight" from "overweight",
while its price target was cut to $12 from $16. Its shares were
down more than 4% at $10.42, on track for the biggest daily
percentage decline since early August. 
   General Motors was downgraded to "underweight" from "equal
weight" and its price target cut to $42 from $47. Its stock fell
5.2% to $45.58, making it the biggest daily percentage decline
since early September.
    EV maker Rivian Automotive  RIVN.O  and Canadian parts
manufacturer Magna International  MG.TO  were both downgraded to
"equal weight" from "overweight". Shares of Rivian were down
5.6% while Magna's were off 3.6%.
    

 (Reporting by Chibuike Oguh in New York; Editing by Alden
Bentley)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))