Goldman Sachs Group Inc. upgraded shares of General Motors (NYSE:GM) from a buy rating to a conviction-buy rating in a research note released on Tuesday morning, TheFlyOnTheWall.com reports. They currently have $45.00 target price on the stock, up from their previous target price of $38.00.
“We add GM to the Americas Conviction Buy list, with 24% upside to our $45, 12-month price target. We see GM as one of the most attractive product stories in the sector. Following a dearth of investment during the downturn the company has significantly ramped up R&D and we estimate GM’s global portfolio age will decline to 4.3 years by 2016 on a global basis from 5.3 years today. Nowhere is this opportunity more visible than North America where we estimate the refresh of GM’s high volume and high margin truck platform the K2xx could drive as much as 1% margin accretion from pricing alone. On a global basis, we see this product driven recovery driving a 15% EBITDA CAGR from 2013-2015 which is meaningfully above the ~10% average we see for the suppliers. We also like the fact that with GM’s $28bn global net pension liability, the equity portion of the company’s enterprise value stands to benefit as rates rise. On our estimates, the 67bp increase we have seen in the Moody’s AA index YTD would imply a $6bn increase in equity value even including an offset from lower returns in GM’s bond portfolio.,” the firm’s analyst wrote.
Shares of General Motors (NYSE: GM) traded up 1.38% during mid-day trading on Tuesday, hitting $36.86. General Motors has a 52 week low of $18.72 and a 52 week high of $36.94. The stock’s 50-day moving average is currently $34.23. The company has a market cap of $50.669 billion and a P/E ratio of 12.47.
A number of other analysts have also recently weighed in on GM. Analysts at Zacks reiterated a neutral rating on shares of General Motors in a research note to investors on Wednesday, July 10th. They now have a $37.00 price target on the stock. Separately, analysts at UBS AG raised their price target on shares of General Motors from $35.00 to $43.00 in a research note to investors on Thursday, June 20th. They now have a buy rating on the stock. Finally, analysts at Jefferies Group raised their price target on shares of General Motors from $31.00 to $36.00 in a research note to investors on Tuesday, June 4th. They now have a hold rating on the stock.
Six analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of Buy and a consensus price target of $41.38.
General Motors Corporation (NYSE: GM) designs, build and sell cars, trucks and automobiles parts globally.
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