Deutsche Bank Reports Bettter Than Expected Quarter For GM

Deutsche Bank is maintaining its Buy rating and its $45 price target on General Motors Co. GM based upon in-line earnings in Q1 for the company. According to Deutsche Bank, “GM reported EPS of $0.95 vs. our forecast of $0.83, with lower taxes, interest expense, and corporate expense accounting for the EPS upside. Automotive EBIT of $1.93 bn was exactly in-line with our $1.93 bn forecast, with a favorable variance in Europe (breakeven vs. DBe of -$245MM) offsetting an unfavorable variance in NA ($1.25 bn vs. DBe of $1.50 bn). We believe that NA earnings will accelerate from here and were particularly encouraged that GM expects pricing improvements and fixed cost reductions to “more than offset” material cost and mix headwinds going forward.” GM closed yesterday at $32.02.