Ahhhh….the new car smell. One of those little treasures in life that we cherish as long as we can. Lucky for all “new car smell lovers”, General Motors (GM) is pumping out new cars, new business strategies and new management, refreshing its senses and its direction. With the appointment of Mary Barra as GM’s new CEO and the execution of key international decisions, the auto giant is paving a way for success and analysts are taking note. Top analysts from J.P. Morgan and Deutsche Bank recommend BUY GM with the same excitement of a teenager sitting in the driver’s seat of a brand new ride.
Many people were shocked by GM’s decision to have Mary Barra succeed Dan Ackerson as CEO, making her the first female CEO of the company and one of very few women leading companies in the industry. Mary started working for the company back in 1980 as an engineering student and worked her way up to lead GM’s global product development. Analyst Rod Lache is encouraged by her leadership and believes the company will see success with Mary at the helm. Rod found Mary to be, “one of the most articulate, thoughtful, and impressive executives in the industry,” adding, “…her range of experience, including product development, manufacturing, and even HR, makes her one of the most well prepared for this role.” Rod is ranked number 80 out of 2309 analysts and has a 7.4% average return over S&P-500.
Not only are analysts pleased with the change in leadership, but they are also happy to see some major changes overseas. Analyst Ryan Brinkman believes GM made the right move when the company removed themselves from Peugeot-Citroen and Ally Financial and closed factories in Australia. “Firstly, the Ally and PSA stakes did little to benefit GM either financially or strategically, and the cash raised is better invested in restructuring efforts to improve the profitability of GM’s core operations.” Ryan is also impressed by the company’s ability to diagnose and fix problems recognizing, “the decision to cease manufacturing in Australia was likely a difficult one internally, given Holden’s storied presence in that market.” With Australian plants closed Ryan, “expect[s] the moves to benefit earnings beyond 2016.” Based on the positive outcomes of these key business decisions Ryan recommends BUY GM. He is ranked 248 out of 2309 and has a 70% success rate of recommended stocks.
With new female leadership and major changes afoot, analysts are eager to recommend BUY GM. To continue following analyst recommendations of GM and other stocks, download TipRanks and start making informed financial decisions today.
