Barclays Maintains an 'Overweight' on General Motors (GM); Rethinking Seasonality

Barclays maintains an 'Overweight' on General Motors (NYSE: GM) price target of $36.00.

Barclays analyst says, "3Q was solid GM posted a clean third quarter, with results ($1.03) ahead of consensus (94c) and close to our $1.08 estimate, with weakness in Europe but strong results in GMNA. The real news was in the guidance - as we pointed out last week, when we noted consensus seemed high for 4Q, GM guided to a softer-than-expected 4Q, with its guidance that adjusted EBIT would be flat year over year ($1bn in both quarters). While we had expected a softer outlook, the guide was lighter than we had thought due to both seasonality and European pressures. Nevertheless, we believe GM still offers upside, although it may be stalled as some of the recent momentum has been broken."

Barclays lowers FY11 EPS estimate from $4.35 to $4.04 and FY12 from $3.91 to $3.83.

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 $22.70 yesterday.

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