Daiwa Securities Downgrades General Motors (GM) to Underperform (Jan 10); Earnings Target 'Aggressive'
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In a report dated yesterday Jan 10, Daiwa Securities downgraded General Motors (NYSE: GM) from Neutral to Underperform with a price target of $33.00 (from $31.00).
Analyst Jairam Nathan commented, "In its Detroit Auto Show presentation on Jan 10th, GM provided 2017 EPS guidance of $6.00-$6.50 compared to consensus expectation of $5.76. The better than expected guidance seems to be hinged on continued strength in North America, China and improvements in South America, GM Financial. Close to $3 billion in share buybacks also help. We find the earnings target as being aggressive, given pricing pressures in the US, adverse currency impact in Britain and growth fatigue in China after a strong 2016. We are therefore downgrading GM stock to Underperform from Neutral."
Shares of General Motors closed at $37.35 yesterday.
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