Jury Still Out on GMDavid Welch
There are signs that some investors think General Motors is turning things around. The company has gotten to break even this year. GM has a few hit cars, like the Cadillac CTS and Buick Enclave. A concession-laden union contract has promted another analyst to recommend GM’s stock. This week, UBS analyst Rob Hinchliffe put a “buy” rating on the stock, saying it could go as high as $48 a share from today’s price of just over $38 a share. His reason: The new labor contract is revolutionary. And indeed the deal with the union is supposed to erase about three-fourths of the $30 an hour labor cost penalty versus Toyota. With Hinchliffe’s vote of approval, seven Wall Street analysts are recommending the stock, which another seven aren’t yet ready to take the plunge on GM.
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