: GM stock gets rating downgrade to sell on ‘growing risk’ of UAW strike


CFRA analyst Garrett Nelson on Friday cut his rating on General Motors Co.’s stock GM, -0.95% to “strong sell,” from the equivalent of neutral, on the increased risk of a United Auto Workers strike. Nelson also cut his 12-month price target on GM stock to $28, from $40, representing a 24% downside over Friday prices. “We move to strong sell on the growing risk of a UAW strike, given reports that the company and union remain extremely far apart in labor negotiations” ahead of the Sept. 14 contract expiration, Nelson said in a note Friday. “GM has a much greater earnings risk in the event of a strike than either [Ford Motor Co. F, -1.60% ] or [Stellantis NV STLA, -0.72% ],” he said. CFRA is also “cautious on the near-term earnings drag from GM’s EV transition as well as ultimate demand for its new models at a time of growing EV market oversaturation,” the analyst. Shares of GM have gained 10% in the year to date, which compares with an advance of about 19% for the S&P 500 index. SPX, -0.53%

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