: 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 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] or [Stellantis NV STLA],” 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

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.