The recently announced cooperation between Ford Motor Co. and Volkswagen AG may have boosted the actions of the US manufacturer, but do not get upset yet.
That's what Morgan Stanley's analysts say, citing Tuesday in a note some of the problems that Ford would have no chance of finding a solution through the partnership with VW.
stocks recently fell by 1% at the end of trading on Tuesday; they traded up to $ 9.03 earlier.
While it is possible to cooperate in the areas of connected vehicles, electric vehicles and autonomous driving technologies, "we believe that Ford has to deal substantially with the pressures of the fundamental model and the business model," analysts say. led by Adam Jonas.
In addition, the valuation of Ford's shares is based on its F-series vans, which already enjoy "substantial margins" and a strong distribution footprint, independent of everything VW
could offer, analysts said.
And Ford's biggest challenge, its European business, is one in which VW already dominates and "has a lot of excess capacity."
It is unlikely that VW will collaborate "on anything important to a manufacturer that it could not substantially control," the analysts said.
Morgan Stanley maintained its Ford equities rating at its neutral counterpart, with a price target of $ 10, up 13% from Tuesday's share price. Ford stocks have lost 33% in the last 12 months, compared to losses of 6.4% and 6.8% for the S & P 500 Index
and the Dow Jones Industrial Average
in the same period.