Deutsche Bank Lowers Estimates on GM (GM) On Pension Underperformance, Cuts Price Target
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Price: $86.77 +0.44%
Rating Summary:
28 Buy, 13 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
28 Buy, 13 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank lowered estimates and its price target on General Motors (NYSE: GM) from $40 to $36.50, but maintained a Buy rating.
The firm notes that pensions continue to be a source of uncertainty for investors. "If pensions were to be re-measured today, "underfundedness" would likely rise, projected cash funding requirements would increase, and prospective (GAAP P&L) pension expense forecasts for 2012 and beyond would likely be revised higher." The firm is adjusting year end 2011 funded status assumptions to reflect 0% asset returns for this year. The firm is adjusting earnings estimates to reflect the pension asset underperformance.
The firm's 2012 EPS estimates for GM go from $4.40 to $4.30.
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 $22.16 yesterday.
The firm notes that pensions continue to be a source of uncertainty for investors. "If pensions were to be re-measured today, "underfundedness" would likely rise, projected cash funding requirements would increase, and prospective (GAAP P&L) pension expense forecasts for 2012 and beyond would likely be revised higher." The firm is adjusting year end 2011 funded status assumptions to reflect 0% asset returns for this year. The firm is adjusting earnings estimates to reflect the pension asset underperformance.
The firm's 2012 EPS estimates for GM go from $4.40 to $4.30.
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 $22.16 yesterday.
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