JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Monday, Bernstein analysts lowered their rating for General Motors (NYSE:GM) stock from Market Perform to Underperform, significantly reducing the price target to $35 from the previous $50. The downgrade reflects concerns over the impact of newly implemented vehicle tariffs and anticipated parts tariffs, which are expected to affect the company’s financial performance. According to InvestingPro data, GM currently generates substantial revenue of $187.44 billion with an EBITDA of $18.69 billion, though its gross profit margins remain relatively weak at 12.35%.
Bernstein’s revised forecast for General Motors predicts a substantial decline in free cash flow by more than 20% and a sharp decrease of over 50% in the projected adjusted earnings per share for 2026. The analysts cite intensifying tariff pressures and weakening consumer sentiment as key factors that are likely to keep GM’s share prices under pressure. InvestingPro analysis reveals that GM currently trades at a low earnings multiple with a P/E ratio of 6.91 and maintains a strong free cash flow yield of 21%. These are just two of eight key insights available to Pro subscribers.
The firm’s analysts have maintained a cautious stance on General Motors for the past six months, attributing their wariness to the growing uncertainties in U.S. policy. With the recent developments providing clearer insights, Bernstein’s outlook for GM has turned markedly unfavorable. The updated estimates from the analysts take into account the expected financial strain from tariffs, a softening in consumer demand, and the possibility that GM has already reached its peak in the current economic cycle.
Bernstein’s announcement comes at a time when the automotive industry is grappling with various global challenges, including supply chain disruptions and changing market dynamics. The firm’s decision to downgrade GM’s stock rating to Underperform is a reflection of the heightened economic headwinds the company faces.
Investors are likely to monitor General Motors closely in the coming months as the company navigates the shifting landscape and responds to the implications of the new tariffs. The reduced price target of $35 indicates a more conservative valuation of GM’s stock, as Bernstein aligns its expectations with the anticipated impact of policy changes on the automaker’s financial health. InvestingPro’s comprehensive Fair Value analysis suggests that GM is currently undervalued, with detailed valuation metrics and growth projections available in the Pro Research Report, part of the platform’s coverage of over 1,400 US stocks.
In other recent news, General Motors (GM) reported a strong performance in the first quarter of 2025, with U.S. deliveries rising by 16.7% compared to the previous year. This increase brought total deliveries to 693,363 vehicles, with notable growth in Buick and Cadillac brands. Meanwhile, GM is increasing production of light-duty trucks at its Fort Wayne, Indiana, plant, a move that will add between 225 and 250 jobs. This decision aligns with a broader strategy to adjust production in response to new tariffs on auto imports.
Additionally, GM has issued a recall for 10,643 Cadillac LYRIQ vehicles due to incorrect information in the owner’s manual regarding head restraints. The company will provide updated manual inserts to owners free of charge. In a significant business development, GM’s joint venture with LG Energy Solution is selling $2 billion in assets to its U.S. unit, including a Michigan battery production facility. This transaction highlights the strategic importance of U.S. operations for the joint venture.
Furthermore, GM, along with other major U.S. automakers, is lobbying for tariff exclusions on certain vehicle parts to mitigate the impact of upcoming tariffs. These efforts are part of a broader push to manage costs associated with global supply chains.
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