Standard & Poor's lowered its opinion of Ford Motor Co. stock to sell from hold -- citing “valuation” reasons -- after Ford's shares rose above S&P's target price of $9.
In a statement issued Dec. 23, analyst Efraim Levy wrote, “Although expected, Ford's confirmation that it has substantially agreed to sell Volvo Car Corp. to China's Zhejiang Geely does contrast with General Motors' failure to sell various assets such as the Saturn brand.”
A definitive Volvo sale agreement is expected in the first quarter, and the deal should close in the second quarter.
The S&P statement says, “Some initial continuing of cooperation between Ford and Volvo is likely, but we expect Ford to focus more on improving and marketing its core brands.”
Ford stock closed above $9 on Dec. 10. Yesterday it closed at $10.20 a share after briefly touching $10.37 for a 52-week high. The 52-week low was $1.50.
Today's high reached $10.29 before closing down 1 percent at $10.11 a share.