Goldman Reinstates Buy Rating on General Motors

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On Monday, investment bank Goldman Sachs (NYSE: GS  ) announced that it has reinstated coverage of General Motors (NYSE: GM  ) 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 (NYSE: F  ) , 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.

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Related Tickers

10/24/2016 4:01 PM
F $12.19 Up +0.17 +1.41%
Ford CAPS Rating: ****
GM $32.98 Up +0.94 +2.93%
General Motors CAPS Rating: ***
GS $175.12 Up +0.45 +0.26%
Goldman Sachs CAPS Rating: ***