Company News

BUZZ-GM stock stalls on Morgan Stanley downgrade to "equal-weight"

** Shares of General Motors Co. dipped more than 2 pct early Weds after Morgan Stanley downgraded the automaker to “equal-weight” from “overweight”

** That said, broker maintains PT at $43

** Lead analyst Adam Jonas believes GM’s lead in the area of autonomous transport is now priced into the stock

** Adds that following its recent rally, co’s valuation at an EV/EBITDA of 4.6x is fully valued relative to its peers

** On Oct 24 GM reported a Q3 loss due to the sale of its Opel unit in Europe; excluding items, Q3 EPS was $1.32, or 18.2 pct better than the analyst mean estimate (TR I/B/E/S)

** Meanwhile, other brokers raised GM PTs; BMO to $48, Citigroup to $60, JPMorgan to $55 and Deutsche Bank to $52; Median PT stands at $45.00 vs $38.50 three months ago

** Of 24 analysts covering GM, 10 rate co “buy” or stronger, 13 recommend “hold” with just 1 “sell”

** Jonas garners 4 of 5 possible stars from Thomson Reuters StarMine for past GM analysis

** Despite Weds downtick, GM shares have increased >31 pct YTD, outperforming the S&P 500 Automobile Manufacturers index 15.5 pct gain (Stephen Culp)