Analysis: Additional recall risk on GM limited


The selloff in shares of General Motors (GM +0.9%) following several unrelated recall incidents is overdone, says Stifel Nicolaus.

The investment firm thinks additional recall risk is limited.

Though Stifel isn't a seller of GM, it also isn't a buyer just yet with valuation looking about right as the automaker faces some additional headwinds in relations to peers.

"We think valuation upside is limited by a lagging turnaround effort relative to peers, and prolonged focus on recalls only furthers GM's window to catch up," writes Stifel analyst James Albertine.

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Comments (2)
  • Momintn
    , contributor
    Comments (6050) | Send Message
     
    I think GM is likely to follow the S&P 500 as it is in that index. It may lag on bad news and present a trading opportunity.
    17 Mar 2014, 01:53 PM Reply Like
  • Budavar
    , contributor
    Comments (1401) | Send Message
     
    Stifel Nicolaus pontificates = "Risk is limited".

     

    A brave stand.

     

    Some of the cases resulting in death may come in front of a jury.
    Their verdict in such cases is often unpredictable, may even shock + awe GM.
    17 Mar 2014, 04:24 PM Reply Like
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