Goldman Sachs Reinstates General Motors (GM) at Buy Post Treasury Share Buyback
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Price: $33.42 +3.18%
Rating Summary:
20 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
20 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
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Goldman Sachs reinstates coverage on General Motors (NYSE: GM) with a Buy rating and $35 price target, suggesting 28% upside. Shares of GM on Not Rated-status pending the completion of its purchase of 200 million shares owned by the US Treasury.
The firm's said they buy rating is appropriate given expectation for 17% EBITDA growth next year driven primarily by the convergence of North American margins towards those at Ford and a secular improvement in Brazilian profitability. Both these will be driven by major product refreshes into 2013, volume improvements and a benign input cost environment, according to the firm.
Following the share buyback from Treasury, Goldman is raising 2013 and 2014 EPS estimates rise by 11% and 10%, respectively, to $4.49 and $5.36 driven by the reduced share count with a slight offset from lower interest income. The firm's numbers are well above the Wall Street consensus of $3.82 and $4.81, respectively.
For an analyst ratings summary and ratings history on General Motors click here. For more ratings news on General Motors click here.
Shares of General Motors closed at $27.32 yesterday, with a 52 week range of $18.72-$27.91.
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The firm's said they buy rating is appropriate given expectation for 17% EBITDA growth next year driven primarily by the convergence of North American margins towards those at Ford and a secular improvement in Brazilian profitability. Both these will be driven by major product refreshes into 2013, volume improvements and a benign input cost environment, according to the firm.
Following the share buyback from Treasury, Goldman is raising 2013 and 2014 EPS estimates rise by 11% and 10%, respectively, to $4.49 and $5.36 driven by the reduced share count with a slight offset from lower interest income. The firm's numbers are well above the Wall Street consensus of $3.82 and $4.81, respectively.
For an analyst ratings summary and ratings history on General Motors click here. For more ratings news on General Motors click here.
Shares of General Motors closed at $27.32 yesterday, with a 52 week range of $18.72-$27.91.
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