Goldman Reinstates Buy Rating on General Motors
Citing improvements in GM's Brazilian operations and an expected "convergence" of profit margins in North America with those of rival Ford Motor (NYS: F) , Goldman Sachs placed a $35 price target on GM shares. The company also increased its estimate of GM's earnings in fiscal 2013 and 2014 by 11% and 10%, respectively, on an expected lower share count following GM's announced buyback of 200 million shares from the U.S. government.
The analyst's new estimates of $4.49 per share to be earned in 2013 and $5.36 in 2014 are 17.5% higher and 11.4% higher, again respectively, than consensus estimates on Wall Street.
GM shares rose 1.2% in response to the news in an abbreviated trading session Monday, but are today down $0.01 from Monday's close at $27.65.
The article Goldman Reinstates Buy Rating on General Motors originally appeared on Fool.com.Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford, General Motors, and Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.