Auto Lender AmeriCredit Shares Rise

DES MOINES, Iowa (AP) — Shares of automobile finance company AmeriCredit Corp. rose Friday as an analyst upgraded the stock, saying loan delinquencies were not as bad as expected and the company has managed its cash through the recession.

Shares rose 99 cents, or 6.7 percent to $15.85 in midday trading. They've traded between $2.85 and $18 in the past year.

Stifel, Nicolaus & Co. analyst Chris Brendler upgraded the company's rating to "Hold" from "Sell."

He said his earlier fears of liquidity issues for the company "were overblown" and the company has not experienced the anticipated level of loan delinquencies.

He also increased the 2010 earnings estimate to 68 cents from 33 cents because of more optimistic credit assumptions. Analysts surveyed by Thomson Reuters on average expect 41 cents a share.

"We stop short of a "Buy" rating as we still see a lot of uncertainty in the current environment and the valuation still isn't that compelling," Brendler wrote in an investor note. "Similar to our card coverage, we prefer to await a more compelling entry point."