UPDATE 1-Ford may fall below minimun cash level by 2H09:Barclays

miércoles 26 de noviembre de 2008 13:23 CET

 (Adds details)
 Nov 26 (Reuters) - Ford Motor Co (F.N: Cotización) may fall below
minimum cash levels by $2.7 billion in the second half of 2009,
said a Barclays Capital analyst, who also lowered his price
target on the automaker's stock by $2.
 "With greater than anticipated cash burn in third quarter
and the automotive downturn expanding globally, we estimate
that Ford is likely to fall below minimum cash levels in 2H09,
requiring Ford to either tap its available credit lines or
request government assistance," analyst Brian Johnson said.
 However, the analyst estimates that Ford has positive
equity value without government assistance.
 Earlier this month, rival General Motors (GM.N: Cotización) warned it
will run desperately short of cash by early next year without
government aid or other drastic measures.
 Analyst Johnson cut his price target on Ford shares to $4
from $6 and widened his 2008 and 2009 loss estimates for the
automaker, citing a slower expected recovery in 2010. The
analyst has an "equal-weight" rating on the stock.
 Ford shares closed at $1.66 Tuesday on the New York Stock
 The following table lists the changes in Ford's estimates
made by the analyst --
 2008 ESTIMATE*     2009 ESTIMATE*      2010 ESTIMATE*
 NEW     OLD        NEW       OLD       NEW        OLD
 $-3.08  $-2.51     $-1.65    $-0.90    $0.50      $0.75
 * All estimates are in per-share figures
 (Reporting by Jennifer Robin Raj in Bangalore; Editing by
Himani Sarkar)