GM Not a Buy for One Analyst
DETROIT (
) -- Not every analyst on Wall Street has a buy rating on
General Motors
(GM) - Get Report
.
Contrarian Standard & Poor's equity analyst Efraim Levy has hold ratings not only on GM but also on
Ford
(F) - Get Report
. That conflicts with the
four buy recommendations by analysts who initiated GM coverage on Tuesday, as well as with several analysts'
positive views on Ford stock.
In a report issued Tuesday, Levy wrote, "Our view remains that the worst is behind us, and that most large companies that didn't file for bankruptcy are poised to profit from higher U.S. and global sales." Like most analysts, he sees
industry sales rising from 11.5 million in 2010: His estimate is for 2011 sales of 13 million.
But Levy said he is "less optimistic on several stocks, mostly in light of higher share prices and increased valuations relative to our 12-month price targets. ...The fundamental story has not changed much, but the attractiveness of the stock prices has sometimes been diminished."
Ford shares have risen 64% this year after rising by 334% in 2009. Ford shares closed Tuesday at 16.73, down 14 cents. On Nov. 17, when Ford opened at 16.76, Levy downgraded the company to hold from buy and set a target price of $18.
As for GM, Levy initiated his coverage on Nov. 22 with a hold and a target price of $36. Nov. 18, GM shares have traded in a narrow window between $33 and $36. GM shares closed Tuesday at $35.26, up 66 cents or 1.9%.
By contrast, Levy has strong buys or buys on four auto parts companies, including
Johnson Controls
(JCI) - Get Report
,
Magna International
(MGA) - Get Report
,
Superior Industries
(SUP) - Get Report
and
TRW
(TRW)
.
-- Written by Ted Reed in Charlotte, N.C.
.
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Ted Reed