Shares of General Motors are indicated down over 2% ahead of the open today at $30.40 on a negative research note out of Goldman Sachs. Goldman trimmed GM’s estimates and the target on the US automaker.
The research piece first and foremost has lowered the target stock price from $42.00 down to $37.00.
As far as estimates being lowered: 2007 EPS cut to $2.85 from $4.25 (ouch); 2008 EPS cut to $3.00 from $3.75; and 2009 EPS cut to $3.25 from $3.75.
These cuts are to reflect the new North American sales and production estimates that Goldman Sachs revised in wake of the August sales results. Shares of Ford (NYSE:F) are also trading lower in conjunction by 1.4% pre-market.
Jon C. Ogg
September 7, 2007
Jon Ogg can be reached at email@example.com; he produces the 24/7 Wall St. SPECIAL SITUATION INVESTING NEWSLETTER and he does not own securities in the companies he covers.