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.