Goldman Sachs upgraded General Motors (GM) to outperform from in-line.
Analyst Gary Lapidus says in a report last week, he suggested financial markets helped GM put its U.S. pension issue behind them, and that the markets likely buoyed GM more than investors realize. Based on follow-up work, Lapidus says he now has greater conviction that his analysis is accurate, and he sees significant upside to his 2004 earnings per share estimate.
Lapidus raised the 2004 earnings per share estimate to $6.25, and says he thinks rising earnings expectations for GM over the next few months can drive the stock higher. He estimates the full normal value of GM to be $60 per share (shares currently trade at $47, based on Monday's close) and he thinks the stock can trade to this level in the near term. Lapidus believes the factors driving the upgrade will be largely complete in the spring.