Bank of America analyst John Murphy has revised the price target for General Motors (GM, Financial), lowering it from $85 to $75 while maintaining a Buy rating on the stock. This adjustment reflects a mixed outlook for the company, where better-than-anticipated production and sales volumes in the first quarter suggest an upside in the upcoming earnings report.
Despite these positive indicators, investor sentiment is dampened by heightened uncertainties surrounding tariff policies. Murphy notes that the ongoing discussions about potential tariffs impose significant uncertainty, which could complicate guidance offerings from companies under his review.
In response to this uncertainty, Murphy has reduced valuation multiples across his coverage by up to 1.0x, highlighting the challenging landscape companies face amid these tariff concerns. As the situation continues to evolve, investors are advised to stay informed of further developments that could impact General Motors and the automotive sector at large.
