TSLA - General Motors In Turmoil As UAW Strikes Ignite Financial Firestorm Analysts Predict Multi-Million Dollar Meltdown | Benzinga
Mizuho analyst Vijay Rakesh reiterated a Neutral rating on General Motors Company (NYSE: GM), lowering the price target to $38 from $40.
The analyst lowered the price target, citing an EV ramp and UAW concessions pressuring margins.
The company reported third-quarter FY23 sales growth of 5.4% year-on-year to $44.13 billion, beating the analyst consensus estimate of $43.68 billion.
In Q3, EBIT margin was 8.1%, down 210bps y/y. Per the analyst, a $200 million impact from the UAW strike weighed on margins, offset partially by strong pricing and higher volume.
Rakesh adds that the UAW strike continues to impact its operations with a current $200 million/week EBIT impact at "current" strike levels.
GM plans to announce an updated outlook once a new UAW contract ...