logo
  Join        Login             Stock Quote

UBS Securities Lowers PT On General Motors (GM) To $30, Maintains 'Buy'

 May 04, 2012 02:32 PM
 


(By Balachander) UBS Securities lowered its price target on shares of General Motors Co. (NYSE:GM) to $30.00 from $34.00, while maintaining its "Buy" rating on the stock.

The brokerage also reduced 2012 EPS outlook to $3.50 from $4.00 and 2013 EPS estimate to to $4.50 from $4.95 to reflect its lower outlook for N American EBIT due to larger than expected mix headwinds.

UBS noted that GM reported adjusted EPS of $0.93, better than its $0.87 estimate and consensus of $0.85. EBIT of $2.2 billion was $340 million better than consensus, driven by better than expected results in Europe and S America. N America also beat excluding $300 million in one-time costs.

[Related -Tesla Motors Inc (TSLA): How Tesla Fares Against Upcoming Electric Cars]

The stock traded down today due to flat sequential EBIT guidance for N America for Q2 and Q3 and needed European inventory reductions, UBS said.

The company indicated the lower full-size pickup mix will result in relatively flat Q2/Q3 N American EBIT. This is consistent with the larger than expected Q1 mix headwind of $300 million y/y. UBS expected stronger mix due to the 20 percent y/y increase in Q1 pickup production; however this benefit was offset by the increase in small cars. The mix headwind will increase in Q2/Q3, and volume will likely not be enough to fully offset it.

UBS also expects Europe to decline q/q due to the G.M's need to cut inventory. The brokerage continues to forecast a $1.4 billion loss in Europe for the year.

GM stock, which has been trading in the 52-week range of $19.00 to $32.68, lost 0.74 percent to trade at $22.20 on Friday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.