Vehicle makers have struggled amid an ongoing global supply chain crisis, and weakening demand for cars as recession fears mount could spell further trouble for General Motors , Deutsche Bank said. “In conjunction with this 2Q earnings preview, we are downgrading GM to Hold from Buy, amid eventual pricing risk to automakers and the absence of near-term auto 2.0 catalysts,” wrote analyst Emmanuel Rosner in a second-quarter earnings preview for the auto industry. “While earnings could remain stronger for longer, we think OEMs (with the exception of Tesla) will struggle to catch investor attention on the current side of the economic cycle,” he added. Shares of General Motors have plummeted 44% this year amid a broader market sell-off. But even as the auto industry grapples with rising costs and manufacturing issues, General Motors recently reiterated its earnings guidance for 2022 . Rosner expects the company to reaffirm these numbers when it reports results. However, he revised the bank’s full-year earnings per share estimates for the automaker, anticipating future headwinds from the likely downtick in commodity prices come 2023. Along with the downgrade, the bank slashed its price target on the automaker to $36 from $57 a share, which implies a more than 9% upside from Friday’s close. — CNBC’s Michael Bloom contributed reporting
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