Ford, Airline Stocks Knocked for Economic Uncertainty
Goldman Sachs lowered expectations for Ford and JPMorgan offered a dim outlook for AMR and other airline stocks this week.
Goldman Sachs removed Ford from its Americas Conviction Buy List, a listing of the investment bank's top recommendations, in a research report released this week. It said it will still maintain "buy" rating on the stock.
Goldman Sachs also lowered its price target for Ford from $20 to $17. It cited a combination of possible downward revisions of the seasonally adjusted annual rate for auto sales and uncertainty about U.S. economic growth.
In another report released on Wednesday, JPMorgan downgraded AMR , the parent company of American Airlines and American Eagle Airlines, from overweight to neutral due to revised loss projections from the airline holding company. JPMorgan also withdrew its year-end 2011 price target for the company.
The JPMorgan report included downwardly revised price targets for several airline companies including Delta , JetBlue , Southwest , United Continental and US Airways .
JPMorgan said it "would reiterate our view that airline equities are best loved when loathed, with the latter certainly describing the space in recent months, in our view."
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Both Goldman Sachs and JPMorgan do and seek to do business with the companies covered in their research reports.