General Motors (GM) Mentioned Positively at Deutsche Bank
Deutsche Bank analyst Emmanuel Rosner reiterated a Hold rating and $33.00 price target on General Motors (NYSE: GM)
The analyst comments "This morning, GM announced financial updates that were generally above expectations, notably with very large share buyback program of $10bn, of which $6.8bn will be effective almost immediately. This is well above our $5bn preview. Importantly, about $6.8bn worth of stock will be retired immediately and the remaining $3.2B by the end of next year, along with a 33% increase in dividend in 2024. The buyback represents ~25% of current market cap, and should benefit 2024 EPS significantly by lowering share count. GM also reinstated its 2023 guidance with stronger FCF though somewhat worse Ebit at now the lower end of its previously issued range. On the other hand, increase in labor costs a bit higher than we thought at $1.5bn in 2024 (vs. our $1.0bn), though the cost includes expectations for Canada/Unifor. The company remains on track to execute its net $2bn fixed cost reduction program, though provided no detail on cost actions to offset higher labor costs."
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Shares of General Motors closed at $28.89 yesterday.