JP Morgan upgraded General Motors (GM) to buy from market perform.
Analyst David Bradley says his upgrade is based on the continuing strength of the U.S. light vehicle market, and the company's favorable market share trends. He says GM now stands out as the best positioned of the Big Three auto companies, distinguishing itself by the quality of its management, products, and improving operating performance.
Bradley raised his U.S. light vehicle sales forecast to 16.5 million, and believes there may be further upside to this forecast. He thinks the industry will see a windfall this year as dealers rebuild depleted inventories. Taken together, these factors should contribute to a further upward revision in GM's EPS estimates.