On Monday, investment bank Goldman Sachs (GS -1.02%) announced that it has reinstated coverage of General Motors (GM 1.11%) with a buy rating.
Citing improvements in GM's Brazilian operations and an expected "convergence" of profit margins in North America with those of rival Ford Motor (F -1.48%), Goldman Sachs placed a $35 price target on GM shares. The company also increased its estimate of GM's earnings in fiscal 2013 and 2014 by 11% and 10%, respectively, on an expected lower share count following GM's announced buyback of 200 million shares from the U.S. government.
The analyst's new estimates of $4.49 per share to be earned in 2013 and $5.36 in 2014 are 17.5% higher and 11.4% higher, again respectively, than consensus estimates on Wall Street.
GM shares rose 1.2% in response to the news in an abbreviated trading session Monday, but are today down $0.01 from Monday's close at $27.65.
