General Motors Co. (NYSE:GM) saw its shares go into reverse in pre-market trading after Goldman Sachs downgraded its stance on the stock to ‘sell’ from ‘neutral’, saying it expects the car maker's earnings to take a downward turn in 2018.
The US bank’s analysts said they are negative on the overall original equipment manufacturer sector, but are extra negative on the auto maker.
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In a note to clients, they added: "Looking ahead into 2018 and given the current valuation level, we see a downward inflection in GM earnings and consequently downgrade shares to sell.”
Goldman is expecting GM to see volume and mix headwinds in 2018 and expects 2018 EBIT- adjusted earnings to be down 22% and margins to shrink.
In pre-market trading, GM shares were down 3.2% at US$43.20.