Credit Suisse Reiterates Underperform Rating, Raises Price Target On General Motors As Increased Cash Return Expectations Boost Shares

In a report published Thursday, Credit Suisse analyst Dan Galves reiterated an Underperform rating on General Motors Company (NYSE: GM), and raised the price target from $32.00 to $33.00.

In the report, Credit Suisse noted, "While much of the upside was related to taxes, GM clearly performed well during Q4. However, we continue to see substantial threats to US Automaker margins in the medium-term and see potential for Ford market share recovery in trucks to weaken sentiment on GM in the near-term. We are raising 2015 / 2016 est's to $4.25 / $4.10 from $4.00 / $4.00 (largely due to a lower tax rate in 2015), raising our price target to $33 from $32 (DCF-based, implying 3.0x EV / 2015 EBITDAP) and maintaining an Underperform rating."

General Motors closed on Wednesday at $35.83.