Morgan Stanley: Capex spending to hold back GM


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.

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Comments (15)
  • HFI
    , contributor
    Comments (1768) | Send Message
     
    From the man that has a PT of 320 on TSLA. I thought crack was illegal...?
    9 Apr 2014, 07:56 AM Reply Like
  • slevental
    , contributor
    Comments (956) | Send Message
     
    Jonas also said ( not reported by error) that if GM will announce that, in principle, it wants to buy 50% of Tesla's gigafactory ( that doesn't exist yet) then his PT for GM will increase from 33 to 133... (JK)
    9 Apr 2014, 08:04 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4858) | Send Message
     
    GM looks "unattractive" not only because of surging capex needs, but its intrinsic corruption and the production of deathtrap cars for a decade sans recalls for known deadly deficiencies. …funfun..
    9 Apr 2014, 08:31 AM Reply Like
  • lorikelly
    , contributor
    Comments (4) | Send Message
     
    Analyst Rating Network..Consensus Ratings for General Motors Company (NYSE:GM) (?)
    Ratings Breakdown: 2 Sell Rating(s), 4 Hold Rating(s), 13 Buy Rating(s), 1 Strong Buy Rating(s)
    Consensus Rating: Buy (Score: 2.65)
    Consensus Price Target: $42.76 (25.36% upside).
    9 Apr 2014, 09:24 AM Reply Like
  • lorikelly
    , contributor
    Comments (4) | Send Message
     
    Consensus Ratings for General Motors Company (NYSE:GM) (?)
    Ratings Breakdown: 2 Sell Rating(s), 4 Hold Rating(s), 13 Buy Rating(s), 1 Strong Buy Rating(s)
    Consensus Rating: Buy (Score: 2.65)
    Consensus Price Target: $42.76 (25.36% upside)
    9 Apr 2014, 09:24 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    GM

     

    #1 in safety in almost all vehicle categories.

     

    More 5 star crash test ratings, than any other automaker

     

    http://bit.ly/1g70qtW

     

    http://bit.ly/1g6J3cT

     

    Tops in quality
    http://bit.ly/1nG96QH

     

    Chevy Volt.

     

    #1 highest rated car in customer satisfaction of all cars

     

    Car & Driver 10 best
    http://bit.ly/1hyx1do
    9 Apr 2014, 09:28 AM Reply Like
  • Remford
    , contributor
    Comments (144) | Send Message
     
    Yep. They score great. Right up to the point of switching off and killing someone for ten years before the problem is made known.

     

    With $60B of other people's money to spend, acing a small overlap crash test is hardly a moon shot. In fact, for that kind of money, man should be roaming around Mars and a cancer or two should be eradicated.

     

    No wonder the U.S. is in such a state of decline. Not only do people seem content to accept crapola, they then strive to rationalize their choices.
    9 Apr 2014, 11:43 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    Remford,

     

    Stocks are forward looking.

     

    If you knew, about engineering, you would know the smaller the car. the harder to achieve high levels of Crash safety.

     

    The Equinox/Terrain is smaller than the Explorer yet outscored it considerably.

     

    Even more impressive is GM is the only carmaker to pass crash tests in the Mini-category. No other company could do so. (Chevy Spark)

     

    http://lat.ms/PRM1vk

     

    BTW given today's Toyota new, recalls are not uncommon. Nor is a $40 lock cylinder a big deal.

     

    It was about 8X bigger & a decade for Ford though.

     

    http://nyti.ms/1kEhvly

     

    Please feel free to provide some data however.
    9 Apr 2014, 11:57 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4858) | Send Message
     
    All the flashing of safety ratings for PR grandstanding means nothing when you have a corrupt Management, which knowingly fails to recall deadly defective cars for recall and fix. That is criminal negligence and fraud.

     

    ...funfun..
    9 Apr 2014, 09:52 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    That, and drunk customers driving your cars.

     

    "All of these crashes occurred off-road and at high speeds, where the probability of serious or fatal injuries was high regardless of air bag deployment,” GM spokesman Alan Adler said. “In addition, failure to wear seat belts and alcohol use were factors in some of these cases.”

     

    From The Detroit News:

     

    http://bit.ly/PRlkHg
    9 Apr 2014, 09:59 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4858) | Send Message
     
    We have noticed over the internet at various sites a campaign by GM Management loyalists and surrogates to evade Management accountability and shift blame away from the decade-long criminal negligence and cover-up. They blame the victims driving GM's defective cars, victims who are no longer alive to speak and testify! That is one cynical and callous trick of PR damage control.

     

    Do you really want to buy a new GM car or truck from these types?

     

    ...funfun..
    9 Apr 2014, 10:10 AM Reply Like
  • Joe Lunchbox
    , contributor
    Comments (711) | Send Message
     
    >The automaker will need to spend heavily to keep up with technology advances including self-driving cars, says Morgan analyst Adam Jonas<

     

    Self-driving cars? Seriously? Wow. Just wow. That's hard to believe.

     

    Downgrading a rating because of something that's not possible. Wow.

     

    This guy Jonas must own one of the recalled cars, and that's his way of getting even.
    9 Apr 2014, 06:17 PM Reply Like
  • HFI
    , contributor
    Comments (1768) | Send Message
     
    Nah, he's also the guy that priced in the Tesla gigafactory already. He's a great analyst for sure.
    9 Apr 2014, 09:22 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    Wang,

     

    Is that Sarcasm? LOL
    9 Apr 2014, 10:38 PM Reply Like
  • HFI
    , contributor
    Comments (1768) | Send Message
     
    I tried... lol
    9 Apr 2014, 10:49 PM Reply Like
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