Goldman Sachs on Friday lifted its outlook for global auto sales in 2020, and within that downgraded Tesla (TSLA) shares to neutral from buy, and lifted General Motors Co. (GM) shares to buy from neutral. Analysts said Tesla's (TSLA) downgrade comes as shares now trade above the bank's upgraded 12-month price target -- from $925 to $950, and as recent datapoints have been mixed. For example, the electric car maker cut pricing by 5-6% on its Model 3, S and X's and delivery lead times for the Model Y have dropped, said the bank. As for GM, analysts said they see 36% upside to a revised 12-month price target of $36 (from $25 prior). And the automaker has met their "rule of 3" on when to buy cyclical stocks -- trough margins, management capitulation and signs of life on the horizon. Shares of rose 5.4% in premarket trading, while Telsa was up 0.3%. As for the industry overall, Goldman is lifting its outlook for auto sales in 2020 to negative 14.5% yoy from negative 17% prior, with an 8.5% gain for 2021 seen.
-Barbara Kollmeyer; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 12, 2020 06:29 ET (10:29 GMT)
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