CIBC World Markets Inc. raised its price target on General Motors Co. (NYSE: GM) to US$36.00 from US$32.00, following the company's quarterly results and outlook.
Michael Willemse, an analyst at CIBC, said investors should consider the earnings power of GM excluding GME as the company restructures the European operations.
"While we remain concerned about continued issues in Europe in 2012, the rest of GM's business operations should perform well in 2012," wrote Willemse who has a "Sector Outperformer" rating on the stock.
Willemse, who lifted his 2012 EPS estimates for GM to US$4.20 from US$4.10, said EBIT at GM Financial was in line with his estimate; however, EBIT at the automotive group was below our estimate due to headwinds at GME and GMSA. This was offset somewhat by stronger-than-expected results at GMNA, he added.
On Friday, the stock advanced 1.07% to $27.46