NEW YORK (TheStreet) -- General Motors (GM) shares are down 1.3% to $30.60 in early market trading on Tuesday after analysts at RBC Capital lowered the rating on the company's stock to "sector perform" from "outperform" before the opening bell today.
The firm also lowered the company's price target to $35 from $41, representing a potential 14.3% potential upside from the stock's current price.
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The lowered outlook is a result of the firm's bearish view of the automotive industry as a whole, citing slowing demand, negative U.S. pricing concerns and high regulatory and technology content costs as reasons for the pessimistic perspective.
The firm specifically mentioned the company's luxury Cadillac brand which it says is priced similar to German luxury vehicle competition, but does not have the same quality as those vehicles do.
"In North America, Cadillac is being priced on top of strong German competition, which while admirable, is questionable as the product (while improved) is not comparable. If higher incentives are used to move volume, that is long-term brand damaging. Brand perception awareness and dealer experience all need improvement," said the firm.
TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: