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Lehman downgraded General Motors (GM
) to underweight from equal-weight.
Analyst Darren Kimball cut the $30 target to $28. Kimball notes the lower market share outlook is driving his 2003 production and earnings per share estimates lower, which he believes will negatively impact the stock. He cut the 28.1% full-year market share target to 27.5%. He says there's no room in his forecast for GM to build more inventory, hence, he's forced to lower his 5.43 million North American production forecast to 5.36 million units.
Kimball cut his $4.00 2003 earnings per share estimate to $3.50, which now includes a 20 cents third-quarter loss. Still, he sees a more challenging environment in 2004, and maintains his $2.25 earnings per share estimate.