UPDATE: General Motors (GM) PT Lowered to $56 at UBS

UBS analyst Colin Langan lowered the price target on General Motors (NYSE: GM) to $56.00 (from $77.00) while maintaining a Buy rating.

The analyst comments "Last week, GM pre-announced that its EBIT-adj. in Q2 would stand between $2.3bn and $2.6bn, as a result of 95k unfinished vehicles in company inventory at quarter-end due to shortages in several parts. GM expects all of these vehicles to be delivered to dealers before year-end. With that, Q2 EBIT-adj. is about $1bn lower than our initial expectation, which can be fully explained by the shortfall in NA volume. We now expect the NA margin to drop to 6.9% vs. 10.7% achieved in Q1. The higher unfinished goods inventory should also result in a negative impact on adj. FCF. We forecast $0.4bn in Q2, implying a very back-half skewed FCF of $5bn in H2."

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