BUZZ-Street View: GM's production plans in flux amid tariff concerns

Automaker General Motors' GM.N earnings exceeded Wall Street's forecasts on Tuesday, but investors still dumped the stock broadly on fears of tariffs that will make it hard for the automaker to hit its 2025 targets

Median PT of 29 brokerages covering the stock is $60- LSEG data

TARIFFS ARE A HOT POTATO

Daiwa Capital Markets ("neutral," PT: $53) sees risks to GM's $2 bln improvement in electric vehicle (EV) operations if co has to cut prices or production due to the cancellation of the tax credit

RBC ("outperform," PT: $67) thinks there is a low probability that Trump tariffs will be fully implemented, while GM is taking the threat seriously and has indicated it can shift production to the U.S.

Morningstar (fair value: $78) says while GM has expedited some units into the U.S. and can move some Mexican or Canadian capacity to U.S. plants, it is unlikely co can avoid most of the impact if tariffs are implemented

Morgan Stanley ("equal-weight," PT: $54) expects GM's FY25 outlook to be cautious due to factors beyond its control, such as competition, uncertain EV market dynamics, and China fundamentals

Brokerage sees a modest decline in internal combustion Engines (ICE) volume, with higher EV volume, resulting in a lower total company volumes