NEW YORK (TheStreet) -- General Motors Co. (GM) - Get Report stock is down 3.96% to $28.22 in afternoon trading on Wednesday after Credit Suisse analysts suggested U.S. auto volumes have peaked, threating automakers' earnings in the "most critical market."
Incentives and inventories have gained since the 2015 third quarter, while credit quality remains weak, Credit Suisse analysts wrote in a note this morning.
The firm does prefer the "outperform"-rated GM over Ford Motor Co. (F), which was downgraded to "underperform" from "neutral."
"We favor GM due to continued self-help costs savings, a favorable product cycle in '16/'17, very favorable inventory position in U.S., and a potential trough earnings scenario that should be less severe vs. F," analysts noted.
Morgan Stanley analysts, however, do not agree. The firm resumed coverage of GM's stock with an "underweight" rating because the economic recession could eliminate the company's profits, The Fly reports.
"This is so out of sync with what I'm seeing," TheStreet's Jim Cramer said about Morgan Stanley's move on CNBC's Squawk on the Street this morning. "This thing was so negative."
Separately, GM has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's earnings per share, net income and revenue growth, notable return on equity, and attractive valuation levels.
You can view the full analysis from the report here: GM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.