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

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View the Latest Analyst Ratings

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

 

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