was holding up too well--->07:37 EDT GM upgraded to Buy from Hold, tgt $35@MDLD
The firm has upgraded shares of GM on expectations for successful negotiations between the UAW-GM-DPH, improving earnings, and cost savings.
07:32 EDT GM General Motors-GM firm advises not shorting the stock at current levels-IL@GSCO
The firm feels that strike risk is eased by the probability GM, the UAW and Delphi will reach a deal and support from the stock still comes from T900 momentum which creates favorable earnings comps YoY. Aggressive marketing and less competition within the SUV segment will continue to drive T900 momentum, along with pick-up model launches. While the firm's analysis from a fundamental valuation viewpoint implies basically that there isn't any value for GM stock, looking at it as a trading stock, the firm sees support N-T in the $25-$30 range.
GM General Motors: upgrade details (25.81 )
As noted at 7:47 Keybanc upgrades GM to Buy from Hold and sets a $35 tgt based primarily on their belief that 1) the UAW-GM-DPH negotiations will be successfully completed with no material labor disruptions; 2) GM's earnings will improve materially in 2006 and 2007 driven primarily by the introduction of the co's new full-size SUVs and pickup trucks; and 3) cost savings initiatives. Additionally, the firm says they are more bullish on the longer-term outlook for GM as they believe 1) the 2007 contract negotiations with the UAW will likely result in a material reduction in structural costs; and 2) the changes underway to streamline the co's global product development process will yield material benefits in terms of lowering product costs, reducing product development times and improving product quality.
may play long and reshort ....
Market Data 
Markets 
AI
