Morgan Stanley Warns On GM Earnings, Cuts Price Target

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Analysts at Morgan Stanley cautioned Tuesday that General Motors Co.'s earnings are likely to follow Ford Motor Co.'s path and cut GM's price target to $27 from $29. "We believe many elements from Ford's recent profit warning are applicable to GM's outlook through 2015 and beyond," analyst Adam Jonas said in a report. Noting that Ford cut its outlook due to foreign exchange and quality-related issues, Jonas said, "On our calculations, GM's exposure to each of these factors is at least as great as Ford's." The analyst now sees GM's earnings rising to $3.62 a share in 2015 and falling to $2.86 by 2017. GM shares are off 4.2% to $32.34, among the weakest stocks in the S&P 500.

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