Bernstein analyst Daniel Roeska lowered on Monday General Motors’ price target by 30%, from $50.00 to $35.00. The analyst also cut GM’s rating to Underperform from Market Perform.
In a new research note, Roeska wrote that “it is time to confront some hard truths: vehicle tariffs have commenced, and parts tariffs are likely to follow within a month.”
Bernstein has slashed its 2026 adjusted earnings per share estimates on the automaker to reflect the impact of the new duties. “Our updated forecast for General Motors shows a reduction of more than 20% in free cash flow and a decrease of over 50% in ’26e adj. EPS. As tariff pressures intensify and consumer sentiment weakens, we expect GM’s shares to remain under pressure.”
General Motors produces 52% of its U.S.-sold vehicles domestically, with 30% coming from Canada and Mexico and 18% from other regions.
Based on Friday’s closing price, Bernstein’s updated price target implies a downside of 20.8%.
The analyst added that “for the past six months” Bernstein has been “cautious as U.S. policy uncertainties started to mount.” Last Thursday, the U.S. President Donald Trump confirmed the previously announced 25% tariff on all imported vehicles and their parts.
“The outlook for GM is clearly unfavorable. Our revised numbers reflect the impact of tariffs, softening consumer sentiment, and the realization that GM’s peak in this cycle may be behind it,” he detailed.
Wells Fargo and Cantor Fitzgerald’s Takes
Last week, Wells Fargo analyst Colin M. Lango also downgraded GM’s price target from $37.00 to $34.00.
In late March, when the tariffs were announced, JPMorgan analyst Ryan Brinkman warned about the impact on automakers’ bottom lines. He estimated it could wipe out General Motors’ global profit, costing the company $14 billion.
As of the time of writing, General Motors is trading at $42.47, a drop of 3.9% since the market last closed.
GM Q1 Results
Last week, General Motors reported the delivery of 693,363 units in the first quarter, up 16.7% year over year. The group highlighted the performance of the Buick and Cadillac brands. GM is ramping up production of light-duty trucks at its Indiana plant, which will create up to 250 new jobs.
The company is expected to release its first-quarter financial results on April 29.
