Analysts rate General Motors Company (GM:NYE) with a Strong Buy, $69 Target

STA Research
by: STA Research

Analysts rate General Motors Company stock with a consensus Strong Buy rating and a 12-month average target price of $69.39 per share.

Deutsche Bank Capital maintains General Motors Company with a Buy rating and reduces the target price to $56 from $75 on the company’s stock.

Based on the General Motors Company stock forecasts from 14 analysts, the average analyst target price for General Motors Company is USD 69.39 over the next 12 months. General Motors Company’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of General Motors Company is Neutral, which is based on 7 positive signals and 7 negative signals. At the last closing, General Motors Company’s stock price was USD 41.72General Motors Company’s stock price has changed by +3.73% over the past week, -6.92% over the past month and -25.19% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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