After a steep run-up in GM stock (GM), Bernstein analysts are warning investors to proceed with caution.
Lead autos analysts wrote in a note that while GM shares have jumped over 85% since November of last year, there are several headwinds on the way that could dampen the stock’s run.
Bernstein downgraded GM stock to Market Perform from Outperform and cut its price target slightly to $53 from $54.50.

While a $10 billion share repurchase program and $6 billion open share buyback plan pushed shares higher this year, that effect only lasted so long.
“We think there is a risk the company will announce additional capital requirements during its October Capital Markets Day. We want to wait and see which updates GM shares,” analysts wrote.
From a macro point of view, continued inventory build in the US will lead to pricing discounts in 2025, impacting profitability. “We assume that discounts will need to increase as inventories are getting pretty high, currently standing at 70 days,” Bernstein wrote.
Meanwhile, GM’s EV ramp might not go as expected. GM’s 200,000 EV production target in North America for 2024 is likely beyond reach, and GM would have to quadruple sales in the final four months of the year to hit that goal.

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