NEW YORK (Reuters) - Shares in General Motors Co GM.N could return as much a 40 percent, including a 5 percent dividend yield, a year from now when investors start to focus on 2017 per share earnings of $6, according to financial weekly Barron’s on Sunday.
Barron’s says GM’s stock should be up “far more” year-to-date than the 2 percent it has gained, pointing out that Wall Street’s earnings consensus has risen 11 percent this year and 16 percent for 2016.
The chief worry among GM’s ‘skeptics’ is that the company’s profits are nearing a peak, the report says. Barron’s believes this is unlikely and says the next economic downturn could prove that GM can be profitable in good years and bad.
Reporting by Edward Krudy; Editing by Andrea Ricci