General Motors Company : GM is back !
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$24.92 | $28 | $24 | +12.36% |
General Motors is trading at a very low level in relation to historic benchmarck as shown by the ratio “enterprise value/revenue” at 0.13x and the price earning ratio would be 5.3x, estimated in 2012. According to Thomson-Reuters consensus, the average target price is set at USD 32.5, which represents a potential gain of 30% on the basis of the current price.
Since early december, GM’s stock has initiated a bullish trend with a rise of 32%. The general bullish trend of U.S stock markets and good sales are important elements to explain why this share is skyrocketing. The 20-days moving average is still trending upward, so it could bolstered share up again.
However, it could be attractive for investors to take a buy order above USD 25 in closing price to target USD 28.The stop loss will be positioned at USD 24.