Despite a downgrade by Nomura on Tuesday, Ford Motor shares have held up well, increasing slightly over 0.8 % after initially falling at the open.

Anindya Das, a Nomura analyst, cut Ford from neutral to sell with a price objective of $13 in a note to clients.

"Ford's stock has risen 104 % so far this year. Ford's peer group (which includes GM, Stellantis, Toyota, Honda, and Nissan) is up 23%, while the S&P 500 is also up," Das added.

Several variables, such as the company's achievement in balancing volume and market share losses, and management's work in turning around Ford's overseas businesses, have excited and justified the market, according to the analyst.

"However, we find it difficult to justify the current premium valuation over peers," Das continued, "especially after Ford's weak wholesales outlook for 2022 (+10 % y-y) due to difficulty securing sufficient chip supplies."

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"This means Ford's wholesales in 2021 will still be 17% lower than in 2019. Ford's Asian competitors, on the other hand, are already predicting considerable worldwide production normalization in November, which will continue thereafter "According to the expert.