S&P drops Ford to 'Hold' on lower 2013 earnings
S&P drops Ford to 'Hold' from 'Buy' on lower 2013 forecast, raises 2014 forecast, price target
DETROIT (AP) -- Standard & Poor's has lowered its view of Ford Motor Co.'s shares to "Hold" from "''Buy," citing lower-than-expected full-year earnings.
S&P lowered its full-year earnings forecast for the automaker by a penny to $1.51 per share on Monday. But the agency raised its 2014 earnings forecast by 5 cents to $1.79 per share. It also raised its 12-month target on Ford shares by $2 to $17.
S&P says Ford's 2013 losses in Europe — which are expected to reach $2 billion — should narrow next year. The company should also see strong U.S. profits because of rising pickup truck sales.
But S&P said Ford's income growth will be muted in China because of the high cost of expanding its production there and in other emerging markets.
Despite S&P's dimmer opinion on Ford shares, the automaker's stock rose 18 cents, or 1.1 percent, to $15.55 in late afternoon trading.
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