Why General Motors Stock Is Sliding Today

General Motors Co GM shares are trading lower Monday following bearish analyst coverage from UBS. 

UBS analyst Patrick Hummel downgraded General Motors from Buy to Neutral and lowered the price target from $56 to $38, citing risks to the company's 2023 earnings. 

"While we continue to like GM's EV momentum in 2023 with a strong (IRA-compliant) launch pipeline, the overall sector outlook for 2023 is deteriorating fast so that demand destruction seems inevitable at a time when supply is improving," Hummel wrote in a note to clients. 

The UBS analyst expects investors to remain on the sidelines as earnings come under pressure in 2023. 

"We expect EPS to more than halve next year," Hummel said. 

Still, the UBS analyst noted that he prefers General Motors stock over Ford Motor Co F shares at current levels.

Related Link: Why Ford Stock Is Falling Today

GM Price Action: General Motors has a 52-week high of $67.21 and a 52-week low of $30.33.

The stock was down 4.46% at $32.11 at time of publication, according to Benzinga Pro.

Photo: courtesy of General Motors.