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Analyst Sees Short Term Catalysts for General Motors (GM)

May 3, 2013 10:55 AM EDT Send to a Friend
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Price: $34.60 --0%

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Goldman Sachs today maintained a Buy rating on General Motors (NYSE: GM) and raised its price target to $38.00 (from $35.00). The change follows GM results reported yesterday. Analyst Patrick Archambault sees a 16% 3- year EBIT CAGR, which will support shares for the long haul, but he also sees near-term catalysts.

"Probably the most important of these is the positive yoy inflection in margins we expect this year from down -1.2% in 1H13 to +1.7% in 2H13, driven primarily by the volume and pricing benefits from the K2xx launch, and improving Latam results as we move past disruptions in Venezuela. We also see important potential positives from further capital deployment given GM’s $19bn net cash position as well the possible addition of GM to the S&P 500," said Archambault.

"While we grant that many of these things are known to investors, they seem far from priced into the shares," he added.

For an analyst ratings summary and ratings history on General Motors (NYSE: GM) click here. For more ratings news on General Motors click here.

Shares of General Motors closed at $31.16 yesterday.




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