In a report issued Monday, S&P analyst Efraim Levy said his price target is $36. He expects the automaker to earn $2.78 in 2010 and $3.62 in 2011. He assigned a multiple of ten to his 2011 estimate.
He said GM benefits from a bankruptcy that brought "reduced operating and borrowing costs and a greater focus on its remaining vehicle brands" and from an expectation of rising industry sales in 2011, partially offset by higher raw material costs.
Levy also has a hold on Ford (F). On Nov. 17, he downgraded Ford from buy and set a target price of $18.Levy increased his estimates for Ford to $1.92 in 2010 and $2.13 in 2011, noting that the company has improving capacity utilization rates, partially offset by higher raw material costs. He said the GM IPO
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