NEW YORK (TheStreet) -- Shares of General Motors Co (GM) were stalling, down 1.68% to $35.69 in early market trading Wednesday, after analysts at Goldman Sachs downgraded the car maker to "neutral" from "buy" this morning.
The firm lowered its price target to $40 from $47, saying it considers GM vulnerable to a weakening China market.
Goldman added that GM's truck pricing is soft.
The firm coupled the downgrade on GM with an upgrade on Ford Motors (F).
Detroit, Mich.-based General Motors designs, build and sell cars, trucks and automobiles parts globally.
Insight from TheStreet's Research Team:
GM is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. During the most recent weekly roundup, this is what Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock:
We do not expect General Motors to agree to a merger with Fiat Chrysler (Fiat has reportedly been pursuing the automotive giant in recent weeks). In fact, we believe it makes more sense for Fiat to get its financial house in order before attempting another merger.
Even more, a combination of Fiat and GM would present enormous challenges, chief of which would be how to reduce capacity in Italy and the U.S. where there would undoubtedly be tremendous resistance to any factory closures or headcount reduction. Economies of scale dry up fast when management is prohibited from rightsizing operations.
Owing to the tremendous cost of overcoming the dealer and capacity challenges, we think economic profitability would be destroyed for several years to come.
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Separately, 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:
"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, impressive record of earnings per share growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."
You can view the full analysis from the report here: GM Ratings Report