(CercleFinance.com) – The General Motors title fell by nearly 3% on Monday morning on the New York Stock Exchange, weighed down by the deterioration of analysts at Berenberg, now to ‘hold’ on the value, against ‘buy’ until here.
Nearly an hour after opening, the automaker’s stock fell more than 2.7%, marking one of the biggest declines in the S&P 500 index.
In a vast study devoted to the global automotive sector, the financial intermediary explains that the scenario of a weakening in demand seems to him more and more likely in 2023.
With this in mind, he explains that he decided to downgrade his advice on GM to reflect his greater caution on the mass market, with a price target reduced from 45 to 41 dollars.
Concerning more particularly GM, the analyst evokes a dynamic which seems to him to be ‘losing momentum’.
According to Berenberg, the objective of a double-digit profit margin can only be achieved from a long-term perspective in view of the inflationary pressures which persist in the immediate future.
The professional also thinks that the group’s autonomous driving platform, dubbed ‘Cruise’, will lose in a market less enthusiastic about issues related to autonomous vehicles.
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