GM Is Not A "Buy" GM, F, DCX
Merrill Lynch upgraded General Motors to a "buy" today. The broker set a $37 price target on the shares based on the assumption that a large number of UAW members would take the auto company's buyout offer. GM's shares rose sharply in pre-market trading.
With the Delphi strike issue still open, the possibility that GM and Ford may have to offer incentives on their models as Chrysler has done with its dealers to decrease inventory, and GM's falling market share, a target of almost 50% on the stock is extreme. It would put the company back near its 52-week high.
Rising gas prices are bound to continue to put pressure on the sales of GM's highly profitable SUV and pick up truck lines.
Until these matters are more clearly predictable, GM's shares are unlike to stay above $25.
Douglas A. McIntyre
With the Delphi strike issue still open, the possibility that GM and Ford may have to offer incentives on their models as Chrysler has done with its dealers to decrease inventory, and GM's falling market share, a target of almost 50% on the stock is extreme. It would put the company back near its 52-week high.
Rising gas prices are bound to continue to put pressure on the sales of GM's highly profitable SUV and pick up truck lines.
Until these matters are more clearly predictable, GM's shares are unlike to stay above $25.
Douglas A. McIntyre
posted by douglas mcintyre at 8:14 AM
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