Morgan Stanley: Capex spending to hold back GM

|By:, SA News Editor

Morgan Stanley downgrades General Motors (GM) to an Underweight rating from Equal Weight on its view the automobile industry will be hit hard by capex spending needs.

The automaker will need to spend heavily to keep up with technology advances including self-driving cars, says Morgan analyst Adam Jonas

Jonas sees GM trading at fair value, although compared to peers it looks unattractive.