UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on General Motors Company
In a report published Friday, Credit Suisse reiterated its Outperform rating on General Motors Company (NYSE: GM), but lowered its price target from $39.00 to $35.00.
Credit Suisse noted, “In a move that seemed to please investors, GM put bookends around the potential 2012 and 2013 losses in Europe. For 2012, GM guided to a loss of -$1.5-1.8b (vs. our -$1.7b), and for 2013, GM indicated it would be ‘slightly better' than 2012. But the 2013 guide was a little softer than expected, and will likely translate to downward revisions to consensus estimates. Adjusting for lower GME expectations and a change to a ~30% tax rate (vs. 20% prev.) post- the likely 4Q12 valuation allowance reversal, our '13 EPS drops to $3.16 (from $4.06) and '14 falls to $4.16 (from $4.87), mostly on the higher tax rate. We are revising our 2012 EPS estimates to $3.16 (from $3.00).”
General Motors Company closed on Thursday at $25.68.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.