Morgan Stanley Warns On GM Earnings, Cuts Price Target

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.