GM Analyst Call Lacks Conviction (GM, F)
General Motors Corporation (NYSE: GM) may have been one of the top IPOs of American history. It was also one of the biggest bankruptcies in American history. S&P Equity Research has decided that GM shares are close to fully valued for investors.
S&P is looking for a modest premium to peers, but there is a concern that higher materials costs will begin to offset gains in auto sales. GM is trading at $34.30 so far on Monday with a 0.1% gain, but the price target is not very enthusiastic. S&P assigned only a $36.00 price target.
It was just last Wednesday that Ford Motor Co. (NYSE: F) was cut to “Hold” from a previous “Buy” by S&P Equity based upon its performance and target objectives catching up to the valuations (or vice-versa).
JON C. OGG