UPDATE: Susquehanna Financial Group Initiates Coverage on General Motors Company with Neutral Rating, $30 PT on Excessively High Expectations

In a report published Tuesday, Susquehanna Financial Group analyst Matthew Stover initiated coverage on General Motors Company GM with a Neutral rating and $30.00 price target. In the report, Susquehanna Financial Group noted, “From our perspective, the ‘shiny new GM' narrative that emerged out of the IPO was little more than a myth, at that point in time. The narrative suggested that GM found redemption in the cold process of bankruptcy. The ‘shiny new' GM would offer restructured operations, new products, higher margins, and share repurchase programs. All of this would be to the benefit of shareholders who purchased the IPO in November 2010. What really happened is that the stone that could become the ‘shiny new GM' was pulled from the rubble pile of a broken balance sheet. Decisions needed to be made, sweat needed to be spilled and time needed to march on for the stone to reveal its shine. We do believe that we are beginning to enter a period where GM begins to meaningfully change its profile. We see a gradual earnings impact over the next several years. Unfortunately, we still see the stock wrestling with excessively high expectations. While we see an improved profit profile in 2015, it is not until 2016 that we think GM can actually be in a position to exceed analyst expectations.” General Motors Company closed on Monday at $30.34.