Market Overview

Barclays: General Motors 'Ain't Got No Respect'

Barclays: General Motors 'Ain't Got No Respect'
Related GM
PreMarket Prep Recap For March 29: The Forecast On Marijuana And Small Bank Stocks
The Market In 5 Minutes
David Einhorn Discusses Plan to Unlock Value at General Motors (GuruFocus)

Brian Johnson of Barclays on Thursday commented that General Motors Company (NYSE: GM) “ain't got no respect” and that shares of General Motors has been among the most “surprising” reaction among companies present at Detroit's North American International Auto Show.

Shares are Overweight with a price target raised to $43 from a previous $42.

“At first glance, we thought that General Motors provided enough in its guidance to keep investors happy – guidance broadly in-line with expectations, commentary on fourth quarter upside, and perhaps most impressively, evidence of North American margin improvement even in the face of rising content costs,” Johnson wrote. The analyst adds that an argument could be made that General Motors is poised to be a mass-market leader in both semi-autonomous and driving and embedded connectivity over the years.

However, Johnson does note that General Motors bears are fixated on a weak free cash flow and capital expenditure guide and no sign of a dividend raise.

Bottom line, Johnson concludes that “even though an interesting bull thesis exists for General Motors, it is still cast by many as a value trap.”

Image credit: Russavia, Wikimedia

Latest Ratings for GM

Mar 2017NomuraUpgradesNeutralBuy
Jan 2017Daiwa CapitalDowngradesNeutralUnderperform
Dec 2016BMO CapitalInitiates Coverage OnMarket Perform

View More Analyst Ratings for GM
View the Latest Analyst Ratings

Posted-In: Autonomus Cars Barclays Brian Johnson Detroit Auto ShowAnalyst Color Price Target Analyst Ratings Best of Benzinga


Related Articles (GM)

View Comments and Join the Discussion!