UBS Raises Price Target on General Motors (GM) Following a $0.31 EPS Beat in Q3

UBS reiterated a Buy rating on General Motors (NYSE: GM), and raised the price target to $50.00 (from $48.00), following the company's 3Q15 earnings results. GM reported a $0.31 Q3 beat vs. consensus. Adjusted EBIT of $3.1bn beat consensus of $2.7bn, reflecting strong margin growth in NA.

UBS commented, "GM traded up ~6% today after reporting a $0.31 Q3 beat vs. consensus. Adj. EBIT of $3.1bn beat consensus of $2.7bn, reflecting strong margin growth in NA. Management is targeting sustained 10% NA margins through industry cycles. We see 10% in 2016 as conservative given YTD margins would be 11.4% ex rental pricing headwinds. New launches & commodities lend additional margin help. GM indicated a 5% decline in raw materials adds about $400m to EBIT. We reiterate our Buy given the solid operational performance in the face of some challenging global markets."

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 $35.42 yesterday.

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