Analysis: Additional recall risk on GM limited

|By:, SA News Editor

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.