Morgan Stanley slashes price target for GM

General Motors Co, which has been struggling with the impact of its massive ignition switch recall, took another hit today when a Morgan Stanley analyst slashed the price target on its stock.

Analyst Adam Jonas lowered his earnings estimates to well-below market consensus and dropped his price target on GM's stock to USD 33 from USD 49. He gave the US automaker's stock an "Underweight" rating.

The analyst says GM stock is cheap for a reason and the auto industry is entering a period of significant technology disruption caused by electric and self-driving vehicles, and that will hurt a number of players.
 

A representative for General Motors could not be reached immediately for comment.

Shares of General Motors fell 2 per cent to USD 33.82 by midday.