CRT Capital Starts General Motors (GM) at Buy, $45 Price Target
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Price: $34.01 --0%
Rating Summary:
20 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 17 | New: 21
Rating Summary:
20 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 17 | New: 21
Trade GM Now!
CRT Capital initiates coverage on yesterday's IPO General Motors (NYSE: GM) with a Buy rating and $45 price target. The firm also started coverage on the Series B Preferred Shares with a Buy.
The $45.00/shr price target reflects TEV/EBITDA multiples of 5.25x and TEV/EBITDA-less-capital expenditures multiples of 9.25x. "We believe that these multiples are appropriate given the much improved fundamentals under-pinning GM (as evidenced by the faster-than-expected recovery in the Company’s earnings) as well as our growth expectations for global light vehicle demand."
"We are valuing GM and Ford (NYSE: F) at essentially the same multiples. We recognize that the two companies have traveled radically different paths, but looking forward, we believe that GM’s relative (to F) strength in the emerging markets is enough to justify using the same multiples for both companies," said analyst Kirk Ludtke.
For more ratings news on General Motors click here and for the rating history of General Motors click here.
Shares of General Motors closed at $34.19 yesterday, with a 52 week range of $0.27-$16.35.
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The $45.00/shr price target reflects TEV/EBITDA multiples of 5.25x and TEV/EBITDA-less-capital expenditures multiples of 9.25x. "We believe that these multiples are appropriate given the much improved fundamentals under-pinning GM (as evidenced by the faster-than-expected recovery in the Company’s earnings) as well as our growth expectations for global light vehicle demand."
"We are valuing GM and Ford (NYSE: F) at essentially the same multiples. We recognize that the two companies have traveled radically different paths, but looking forward, we believe that GM’s relative (to F) strength in the emerging markets is enough to justify using the same multiples for both companies," said analyst Kirk Ludtke.
For more ratings news on General Motors click here and for the rating history of General Motors click here.
Shares of General Motors closed at $34.19 yesterday, with a 52 week range of $0.27-$16.35.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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