GM's pleasant 7% shock for investors, Mary Barra upbeat on future
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The world’s fourth largest motor manufacturer certainly bucked an otherwise gloomy trend on Friday, giving investors news that sent its share price soaring. By close of trade the GM stock had gained 7% to over $37, taking it back to the where it traded before September’s market meltdown.
Of the 24 Wall Street firms that cover GM, 13 now rate the stock a buy and two have it overweight in their portfolios. There is only a single firm which recommends selling. Their average target for the stock 12 months hence is $44.14 – an uplift of around 19% on the current price. If Ms Barra keeps delivering messages like Friday’s, that may even prove conservative.
I’ve been getting a good feeling about the investability of GM stock, despite the obvious headwinds of the move to electric cars kills off the internal combustion engine and enormous efficiencies on the horizon as self-driving vehicles threaten to cut the car fleet. But if there is one major manufacturer which could buck the depressing trend, it’s Mary Barra’s outfit. This daughter of a GM lifer has put the company’s survival at the centre of her universe, staring down politicians including her nation’s president, by cutting costs – and jobs – to keep the business healthy.
O
Of the 24 Wall Street firms that cover GM, 13 now rate the stock a buy and two have it overweight in their portfolios. There is only a single firm which recommends selling. Their average target for the stock 12 months hence is $44.14 – an uplift of around 19% on the current price. If Ms Barra keeps delivering messages like Friday’s, that may even prove conservative.
I’ve been getting a good feeling about the investability of GM stock, despite the obvious headwinds of the move to electric cars kills off the internal combustion engine and enormous efficiencies on the horizon as self-driving vehicles threaten to cut the car fleet. But if there is one major manufacturer which could buck the depressing trend, it’s Mary Barra’s outfit. This daughter of a GM lifer has put the company’s survival at the centre of her universe, staring down politicians including her nation’s president, by cutting costs – and jobs – to keep the business healthy.
O
