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The Turning Point For General Motors Is Now (Here's 4 Reasons Why)

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The Turning Point For General Motors Is Now Here's 4 Reasons Why
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On Thursday, Citi gave an update on General Motors Company (NYSE: GM). Specifically, the firm noted four reasons why its market position has never been better:

  1. Execution: General Motors' operating margins in North America are rising, and the company is poised to lead with numerous key technologies such as V2V, LTE and Supercruise.
  2. Earnings: General Motors reported fourth quarter EPs of $1.19 above consensus estimates. Guidance on 2015 earnings looks positive as well.
  3. Cash Flow: 2015 cash flow guidance was reported above analyst expectations, showing that General Motors has the capital necessary to make capital expenditures and position itself to be a leader in the U.S. automobile market.
  4. US demand of automobiles: With the fall in gas prices, GM is positioned with many key technologies to take advantage of the recent surge in US automotive sales.

Related Link: Expert: GoPro Could Move 10% After Earnings

Citi currently rates GM as a Buy with a $49 price target.

Other banks issued comments on the stock as well:

Bank Of America/Merrill Lynch: "On an operating basis, the upside in the quarter was driven by stronger than expected results in South America and GMIO, while other regions were largely in-line…. We continue to expect GM's results to be led by NA in the near term, particularly considering strong industry mix & pricing and GM's upcoming product launches."

Morgan Stanley: "NA results were in line but look to be high quality (destocking) while the 20% EBIT beat vs. consensus was driven by LATAM, EU and non China IO. Under the circumstances, results were excellent – but the 20% dividend increase is what drives the stock."

General Motors is up almost 1.4 percent during Thursday's trading.

Image credit: Public Domain

Latest Ratings for GM

DateFirmActionFromTo
Jan 2017Daiwa CapitalDowngradesNeutralUnderperform
Dec 2016BMO CapitalInitiates Coverage OnMarket Perform
Dec 2016MacquarieInitiates Coverage OnOutperform

View More Analyst Ratings for GM
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas Price Target Analyst Ratings Trading Ideas Best of Benzinga

 

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