Shares of General Motors (GM) dipped to $33.77, decreasing more than 2% in early market trading Wednesday, following a downgrade from Morgan Stanley (MS)’s Adam Jonas.
In a note published this morning the analyst said he downgraded the auto maker to ‘Underweight’ from ‘Equal Weight’, reducing his 12-month price target from $49 to $33 based on expectations the industry will be pressured by increasing technology capital expenditure needs. The author goes on to say that he believes GM will need to invest heavily in connected-vehicle technology, on advanced hybrid vehicle powertrains and eventually driverless cars, which according to Jonas will pressure the co.’s margins and earnings.
The note appears to be moving the ticker even more to the bearish side this morning, pushing it to a NLOD of $33.69.
GM currently trades at the lower end of a 3-month range.