GM Shares Up After High Marks From Wall Street
DETROIT - General Motors Co shares rose as much as 3.1 percent and closed 2.1 percent higher on Tuesday after banks resumed coverage of the automaker with high marks for its strong post-bailout balance sheet and its position in emerging markets, reported Reuters.
The positive ratings by Wall Street come just six weeks after GM returned to the New York Stock Exchange in the largest initial public offering in history - about $23.1 billion. Its high was $35.99, reached on its first day of trading Nov. 18.
GM shares closed at $35.32 on Tuesday, up 2.1 percent, and hit a high during the session of $35.67, up 3.1 percent.
GM's starting IPO price was $33 per share.
Morgan Stanley set the highest 12-month target price among the firms issuing reports, at $50 per share.
JPMorgan started its coverage of GM with an "overweight" rating and set a price target by December 2011, at $44 per share.
Barclays Capital also rated the company "overweight" and set a price target of $42 per share.
Credit Suisse set a 12-month price target of $43 and called for GM shares to "outperform" in its resumption of rating the world's No. 2 automaker after Wall Street firms adhered to a quiet period after trading resumed.
Barclays said GM is "relatively attractive" for three reasons - strong positions in emerging markets China and Brazil; strong earnings in North America due to price discipline; and even a conservative estimate of its financial position suggests a $42 per share price target.
JPMorgan sees the "potential for significant additional appreciations beyond year-end 2011."
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