Goldman cuts General Motors, other auto and parts companies
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Thu, 26 Jun 2008 11:38:02 GMT |
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(Reuters) - Goldman Sachs downgraded General Motors Corp to "sell" from "neutral," and added the stock to its "Americas Sell List," saying the main risks for the automaker include likely equity dilution, dividend cut and cash burn."We think GM's automotive cash flow burn this year and next is likely to lead it to look to raise capital, which we believe could lead to significant shareholder dilution and/or a cut to the company's dividend," analyst Patrick Archambault said.Archambault also cut his price target on Ford Motor Co to $5 from $8. He downgraded Lear Corp to "sell" from "neutral" and Tenneco Inc to "neutral" from "buy."(Reporting by Eric Yep in Bangalore; Editing by Himani Sarkar)
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