Bernstein Keeps ‘Underperform’ Rating on GM

Bernstein analyst Daniel Roeska raised the price target on General Motors to $41 (from $36) while maintaining an Underperform rating.

“GM’s Q2/25 looked fine on paper, but dig deeper, and GMNA is eroding under $1.1bn in tariffs while BEVs return to cash burn mode.

FY25 targets now hinge on cutting costs and capex, not on top-line strength. The bigger issue?

The market still sees this as transitory.

With no real relief on tariffs and BEV incentives rolling off in Q3, the margin story could get worse before it gets better.

We raise our 2026 EPS on greater tariff clarity, but maintain Underperform: because normalized earnings may not return anytime soon. A decent print, but it gets harder from here.

Q2/25 came in above consensus: adjusted EPS was $2.53 (+8% vs.

Street), group EBIT was +5% vs. expectations, and revenues beat by nearly $2bn. But the core GMNA business missed EBIT by 7.5%, and margins fell 150bps QoQ.

GM blames tariffs, FX helped, and GMI/China surprised positively, but none of this points to structural strength.

GM resumed buybacks and reiterated FY guidance.

But without real tariff mitigation or investment cuts, hitting both EBIT and FCF targets will be a tall order.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.