GM Downgraded to Hold by Deutsche Bank

Deutsche Bank, a German institution, today downgraded its rating on GM (GM) to Hold from Buy.

The bank downgraded the shares primarily due to the Trump administration's tariff policies.

Long-Term Effects of Tariffs Cited as Key to the Downgrade

GM stock could tumble over the longer term due to the Trump administration's imposition of tariffs, Deutsche Bank warned.

In the shorter term, the bank expects the automaker to withdraw its full-year guidance when it reports its first-quarter results on April 29. GM will have to pull its outlook due to the issues created by the tariffs, Deutsche Bank warned.

And although GM is currently changing hands at a very low forward price-to-earnings ratio of 3.8 times, the bank thinks that this positive aspect is overshadowed by the threat posed by the tariffs.

More Information About GM Stock

Analysts on average expect the automaker's earnings per share to jump to $11.37 this year from $10.60 last year. However, the mean outlook calls for GM's EPS to rise to only $11.66 in 2026.

In the last month, the shares have dropped 7%, while they have retreated 9% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.