NEW YORK (TheStreet) -- Shares of General Motors (GM) - Get Report were falling in early morning trading on Wednesday as the stock's rating was reduced to "neutral" from "buy" at Bank of America/Merrill Lynch.

The firm also lowered its price target to $37 from $43 on shares of the Detroit-based car manufacturer.

"Although we continue to believe that GM's earnings and cash flow will continue to improve in 2016e to 2018e, we believe that sentiment is likely to keep a lid on the stock as the peak of the U.S. auto cycle approaches," the firm said.

BofA/Merrill Lynch said that the incremental boost from leasing, which accounted for more than 30% of the industry's new vehicle sales in the first half of 2016, is "even more concerning" that decelerating sales growth.

There are fewer options left for automakers to help drive sales, the firm noted, adding that GM has had "impressive" execution in the past five years.

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Additionally, GM reported better-than-expected results for the 2016 third quarter before yesterday's opening bell.

Separately, 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.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.

The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: GM

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