General Motors was a beneficiary of the Obama Administration's bailout. But if Governor Romney becomes president, he has indicated that he would sell the government stake quickly, which is being seen as a potential catalyst for the stock.
Still RBC believes that Treasury will sell its stake next year, "regardless of the election outcome."Instead, analyst Joseph Spak focuses on the "larger long-term effect" stemming from a Romney presidency -his opposition to recent Corporate Average Fuel Economy (CAFÉ) standards (54.5 mpg by 2025). " We believe these standards are achievable, but they will add thousands of dollars to the cost of a vehicle, which could stunt auto sales and weigh on automaker margins. Repealing current CAFÉ legislation could prove to be net positive for automakers," Spak wrote. The same applies for Ford (F) as well. 17 analysts rate the stock a buy, 3 analysts rate it a hold and one analyst has an underperform rating on General Motors.
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