In the auto industry, General Motors (GM) and Uber Technologies (UBER) have both received upgrades, with Seeking Alpha analysts citing improving margin dynamics and attractive risk/reward profiles. Meanwhile, UnitedHealth Group (UNH) and Novartis (NVS) face downgrades as analysts believe both stocks are now fairly valued following recent price appreciation.
Upgrades
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General Motors Company (GM): Upgrade to Hold by Ken Taylor. The analyst sees GM narrowing its valuation gap with Toyota by targeting an 8-10% adjusted EBIT margin and improved cash flow durability, though he awaits further evidence before moving to a buy rating.
“In recent years, GM has effectively improved its cost structure, boosting operating margins and adjusted EBIT. Automotive free cash flow generation has followed…GM has been offsetting tariffs and expects a tailwind in 2026, which must remain when the company reports Q4 earnings.”
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Uber Technologies (UBER): Upgrade to Buy by JR Research. The analyst believes the risk/reward balance now favors Uber as robotaxi disruption is unlikely to materially impact the company’s economics before the decade’s end, with autonomous vehicles projected at only 7.5% market share by 2030.
“For Uber, I believe what matters is that the company continues to do what it does best with its fleet aggregation model, while pursuing adjacencies in highly profitable advertising, and also the faster-growing deliveries segment has helped to stem a slowdown in mobility.”
Downgrades
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UnitedHealth Group (UNH): Downgrade to Hold by Brett Ashcroft Green. The analyst notes that while the company still has an attractive dividend, valuation analysis suggests the stock is fully valued at current prices with limited upside potential.
“UnitedHealthcare is not quite the fundamentally cheap stock it was back in May of 2025. Some of this has to do with price appreciation and some with margin contraction and revisions of forward expectations. … I don’t believe buyers at this price should expect large multiple expansions that lead to significant capital appreciation in the coming 12-24 months.”
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Novartis (NVS): Downgrade Buy to Neutral by Mare Evidence Lab. The analysts cite higher generic competition and Kesimpta destocking activities as likely headwinds, expecting 2026 to be a transition year with upside increasingly capped.
“Given the recent positive stock price performance, we believe Novartis is fairly priced. On a numbers basis, the company reached our target price, so we moved our rating to neutral…We do not view Novartis as a poor investment; however, valuation remains a critical consideration.”