Market Overview

UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on General Motors Company

Related GM
Toyota to Cut Lexus Parts Prices in China from Next Month
Morgan Stanley Says U.S. Automakers See Better Loan Quality And Availability
GM Recalls 269K Cars for Five Issues (Fox Business)

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.

Posted-In: Credit SuisseAnalyst Color Price Target Analyst Ratings

 

Related Articles (GM)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters