From Standard & Poor's Equity Research
Deutsche Bank downgraded General Motors (GM
) to sell from hold, explaining that the stock price already reflects positive developments.
Analyst Rod Lace was expecting the company to have near term upside from its deal with Delphi, GM's attrition program, and a relatively strong second quarter.
Lace says he believes that at least two of these factors (Delphi and the attrition program) are reflected in the stock. He says increased caution is now warranted; retail sales appear to be moderating, while pickup truck demand appears to have taken a negative turn. He lowers his target to $24 from $25.