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Analysis: GM's margins gains are sustainable

  • Deutsche Bank maintains its Buy rating on General Motors (GM +3.7%) after taking in the automaker's Q3 report.
  • The buzz over GM's quarter is primarily over the impressive margin gains it realized. Deutsche thinks the improvement is sustainable.
  • The investment firm's price target of $46 implies it thinks GM's shares can remain feisty.
Comments (1)
  • Remford
    , contributor
    Comments (104) | Send Message
     
    I'd wade carefully into these waters. GM's margins gains are largely attributable to the mass overproduction and hyperincentivized 2013 trucks into its 2014 model year transition, which have seen price increases the buying public has decidedly backed away from. The truck volume as an overall percentage of the business is not sustainable, nor is the extent to which further incentives which are already running concurrently with GM's wholesale price increases - the extent of which won't be known.

     

    The net takeaway should be how GM managed to drive so little from so much.
    30 Oct 2013, 03:47 PM Reply Like
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