Analyst thinks GM is moving with urgency
DETROIT (AP) — After examining General Motors' second-quarter earnings, a Jefferies analyst thinks the company's management is moving with greater urgency to fix problems in Europe and South America.
THE OPINION: Analyst Peter Nesvold said GM continues to post strong numbers in North America, where it earned a $2 billion pretax in the second quarter. Its $361 million operating loss in Europe wasn't as bad as feared. But company management said it wasn't meeting its goals compared with last year, and CEO Dan Akerson said that is unacceptable. Nesvold kept his "Hold" rating on GM's stock but cut his 12-month price target by $1 to $22. He also trimmed his 2012 earnings estimate from $3.20 to $3.07 per share, and his 2013 estimate from $4.28 to $4.22.
THE STOCK: GM's stock price rose 85 cents, or 4.4 percent, to $19.99 in early afternoon trading as the broader market rose on better job creation numbers. But the carmaker's stock is trading near its lowest levels since selling for $33 in an IPO almost two years ago. It has traded between $18.72 and $27.68 in the past year.
