Boston, MA 08/13/2014 (wallstreetpr) – A brokerage expects the biggest automaker in the U.S. General Motors Company (NYSE:GM) to come out of the recall issue and post a robust earnings per share growth next year. The analyst of the brokerage feels that there were enough room for the company to deliver a strong result in the financial year 2015.
Rating Of Stock
Investment advisor Sterne Agee said that the sell off in the aftermath of the ignition switch recall was overdone and that it was time to focus on the operational aspects of the company and estimations for the next year. Its analyst Michael Ward had not only retained his rating of Buy on the stock of General Motors but had also kept the price objective of $50 citing the recent sell off only makes the counter more attractive.
Since General Motors Company (NYSE:GM) had indicated $1.5 billion charges towards the recall issue during the second quarter earnings announcement, the brokerage had turned towards the expectations of the next year. The analyst expects the automaker to earn $5 a share for the financial year 2015, which was 44 cents a share more than the Wall Street analysts’ estimations of $4.56 a share.
Sterne Agee also said that the company would benefit from the restructuring of Europe, seasonal momentum to end the year strongly with products and earnings that would form favorable catalyst on the shares. The next big catalyst could come from General Motors’ investor conference scheduled for October.
Other Brokerages
After General Motors Company (NYSE:GM) announced its financial numbers for the June quarter on July 24, at least two brokerages had downgraded the stock the next day. Deutsche Bank had downgraded it to a rating of Hold from Buy and CLSA to Buy from Outperform. A few days before the results announcement, Citigroup Inc (NYSE:C) had maintained its rating of Buy on the automaker’s stock with a price tag of $48.
Dividend
General Motors Company (NYSE:GM) said that its board had declared a dividend of 30 cents a share for the third quarter. The dividend would be paid on September 26 to those shareholders, whose names appear on the record date of September 10.
