GM Cruise Setbacks And EV Profitability Concerns: Analyst Lowers Expectations for Future Investments
Portfolio Pulse from Shivani Kumaresan
Morgan Stanley analyst Adam Jonas reiterated an Overweight rating on General Motors Company (GM) but lowered the price target from $41 to $40. Despite GM's Q3 FY23 sales growth and better-than-expected results, concerns are raised about the profitability of its EV business and setbacks in its autonomous vehicle business, Cruise. The analyst expects GM's EV business profit data to show negative margins and sees challenges in the execution of the go-to-market strategy for Cruise.
October 27, 2023 | 6:08 pm
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Despite GM's strong Q3 FY23 results, the lowered price target and concerns about the profitability of its EV business and setbacks in Cruise could negatively impact the company's stock price in the short term.
The lowered price target from Morgan Stanley, coupled with concerns about the profitability of GM's EV business and setbacks in its autonomous vehicle business, Cruise, could lead to a negative sentiment among investors, potentially driving the stock price down in the short term.
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