GM’s Rating Rises
June 25, 2007

Goldman Sachs raised General Motors’ share recommendation to  “buy” from “neutral” because the brokerage firm sees the United Auto Workers union offering larger concessions than previously expected to the automaker.

"The stock is pricing in a level of concessions we think is highly probable,'' a Goldman analyst wrote in an e-mail. "That implies little to no downside and potentially large upside from the real possibility concessions end up even larger than what is priced in.''

Goldman, which raised its share-price target for GM to $42 from $29, pointed to the UAW’s concessionary deal with auto supplier Delphi Corp., announced last week, and UAW president Ron Gettelfinger’s recent signal of flexibility over retiree benefits through a special union-managed fund and automaker contributions.

Posted by Michelle Krebs at 6:57 AM under GM , News | Comments (0) | digg this | Seed Newsvine