General Motors downgraded to Equal Weight from Overweight at Barclays

Barclays downgraded General Motors (GM) to Equal Weight from Overweight with a price target of $40, down from $70. The firm downgraded a handful of names and reduced estimates in the autos and mobility group to reflect the earnings impacts from tariffs. Barclays also downgraded its industry view on the sector to Negative. A “highly challenging environment” makes a near-term investment case for the autos sector is “increasingly difficult,” the analyst tells investors in a research note. The firm sees multiple near-term pressures, including earnings pressure, risks to consumer health, and a cloud over auto tech investment. “Auto tariffs are seemingly here to stay, and valuations are seemingly not pricing in full tariff risk,” contends Barclays. The downgrade of GM reflects the company’s “significant risk” to near-term earnings from tariffs. Barclays maintains a slight preference for Ford (F) over GM.