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."
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Shares of General Motors closed at $35.42 yesterday.