In 2009, several major banks dropped their stake in General Motors after the company went bankrupt and its stock was delisted from the New York Stock Exchange. Nowadays, those very same banks are rating the stock of the “new” GM as “overweight” — which when talking about stocks, is a very good thing.
The banks that give GM an overweight rating include J.P. Morgan, Citigroup and Barclays Capital, and all of them predict that GM stock will be trading somewhere in the ballpark of $42 to $44 a share by the end of 2011, one year from now. Considering that The General’s stock is currently sitting pretty around $36 a share, such a gain seems plausible.
Source: The Detroit News