UPDATE: Sterne Agee Reiterates Buy Rating, Raises PT on General Motors Company

In a report published Friday, Sterne Agee Group reiterated its Buy rating on General Motors Company

, and raised its price target from $30.00 to $34.00. Sterne Agee noted, “We have increased our 2013 and 2014 earnings assumption to reflect the initial phase of the U.S. Treasury's exit from its ownership stake in GM. On December 20, 2012 GM announced that it would purchase 200 million shares of common stock from the U.S. Treasury before the end of the year. We have increased our 2013 earnings assumption for GM to $4.30 per share up from $3.85 per share and we have increased our 2013 estimate to $5.00 per share up from $4.50 per share to reflect the reduced share count. We have increased our price target to $34 per share up from $30 per share to reflect the increased estimates and to discount 2014 assumptions. Our target assumes the low end of our expected valuation range using the average of both an EV/EBITDA and P/E metric.” General Motors Company closed on Thursday at $27.67.