GM - GM Cruise Setbacks And EV Profitability Concerns: Analyst Lowers Expectations for Future Investments | Benzinga
Morgan Stanley analyst Adam Jonas reiterated an Overweight rating on the shares of General Motors Company (NYSE: GM) and lowered the price target from $41 to $40.
The automaker 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. Adjusted EPS of $2.28 beat the estimate of $1.88.
The results, the analyst says, are further evidence of the resiliency of the core internal combustion engine (ICE) light truck business, driving better-than-expected results and nearly $5 billion of free cash flow in the quarter.
The analyst writes demand for ICE vehicles will continue to surprise positively vs. consensus expectations over the next 12 months.
Also, the de-adoption of ICE in GM's core North American market will be much more gradual than ...