General Motors downgraded at Bernstein

General Motors (GM) shares slipped slightly Monday afternoon. The automaker was downgraded to Market Perform from Outperform at Bernstein, with analyst Daniel Roeska citing headwinds such as concerns about costs and the possibility of more discounting.

Market Domination anchors Madison Mills and Josh Lipton discuss the call in the video above.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Stephanie Mikulich.

Transcripción del vídeo

Let's get over to General Motors as well and focus today.

The automaker hit with a downgrade by Bernstein citing mounting earnings challenges.

And over the weekend, the company saying it will temporarily lay off two thirds of its workers at its Fairfax assembly plant in Kansas.

Just speaking about Daniel Rosa's call here saying that there is a risk that GM will announce additional capital requirements heading into October also cutting his 2025 eps call by a whopping percent to just a little over $8.20 a share for GM.

So that is a pretty significant call when it comes to their 2025 picture here saying quote, continued inventory build in the US could lead to pricing headwinds and the delayed ramp on ES and crew as well.

So interesting to see just this widespread nature of headwinds across multiple different types of products that they're offering.

Josh, it was a tough note.

I was almost curious that they stayed actually on the sideline with, with a market perform given the number of challenges.

They say some of these data signals are suggesting here price target is, is 53.

Um All these factors that he listed there that you noted, um, says these impact earnings in 2025 they did lower their, their 2025 estimates as well.

That's a really good point though.

Why did it not get to that critical cell level instead just going down to market?

That's a dramatic move, man.

You gotta, I mean, you're gonna get, you know, that's, that's a big move right there.

Go to a cell.

Come on.

We're too high drama.

The, I know, I know.

I watch too much reality TV.