A worker inspects pickup trucks at the General Motors Co. assembly plant in Michigan.
stock and raised their price target on the shares by $4 to $48, which represents a 25% upside over Thursday prices.
“Besides strong expected volume/price/mix contribution from its new U.S. trucks, GM should benefit from large immediate savings from its restructuring efforts, which we believe are underestimated by investors, and that will continue to ramp up through 2020,” they said.
GM earlier this week reported fourth-quarter adjusted EPS of $1.43 on sales of $38.4 billion, thanks to North America operations and lower spending at Cruise, its driverless-car unit, offset by China weakness and a higher tax rate.
Related: Tesla lowers Model 3 price again
The Deutsche Bank analysts also raised its per-share earnings estimate for the year to $6.75 from $6.65 “as we give GM credit for ($2 billion) in restructuring savings and better U.S. truck mix contribution,” they said.
GM shares have lost 9% in the past 12 months, narrower losses than Tesla Inc.’s
11% and Ford Motor Co.’s
22% in the same period and in contrast with gains around 0.5% for the SP 500 index
Claudia Assis is a San Francisco-based reporter for MarketWatch. Follow her on Twitter @ClaudiaAssisMW.
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