UBS Reiterates Buy on General Motors (GM) Following 2Q Earnings Beat

UBS reiterated a Buy rating and $41.00 price target on General Motors (NYSE: GM) following the company's 2Q earnings report.

Analyst Colin Langan commented, "Similar to Q1, GM traded up just 2% (vs. industry ~flat) after posting another strong earnings beat. The adj. EBIT beat was almost all attributed to N America driven by pricing ($0.9bn y/y) and volume (~$0.4b net of negative rental mix). GM was cautious on GMIO ex China and not surprisingly, EU, post the UK referendum. However, GM was still confident enough in N America to raise FY guidance from $5.25-$5.75 to $5.75-$6.00. Lower taxes also helped as tax guidance was adjusted down from mid-20% to low-to-mid 20%. We continue to believe global markets are more stable than investors expect, and with cost cutting and buybacks ($5.2bn remaining through 2017) we see ~9% EPS growth into 2017."

For an analyst ratings summary and ratings history on General Motors click here. For more ratings news on General Motors click here.

Shares of General Motors closed at $32.03 yesterday.

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