Goldman Sachs analysts upgraded their rating on General Motors stock on Tuesday to conviction buy — the firm’s strongest possible indication to investors to buy shares.
The analysts gave The General’s shares a $45 per share price target, noting that the automaker’s earnings could be strong enough in the second half of the year for it to begin paying a dividend. GM’s new trucks — the 2014 Silverado and Sierra — should improve the firm’s margins, said the analysts, thereby helping to drive shareholder returns higher.
GM’s stock slipped roughly 1 percent to $36.18 on Tuesday, but increased 0.50 percent to $36.36 on Wednesday, both as of market close. The automaker will announce its its Q2 2013 business results on Thursday, July 25.