GM: shares extend rally after Deutsche Bank upgrade

(CercleFinance.com) - General Motors shares rose on Thursday, extending yesterday's rally, after Deutsche Bank analysts upgraded their rating on the stock.


Exactly one month after downgrading GM to "hold" on concerns regarding its liquidity risk, the investment bank upgraded the stock again to "buy," while boosting its target price from 25 dollars to 30 dollars.

GM shares were up 2.3% percent in early trading after rising 3.1% on Wednesday on better-than-expected first-quarter earnings.

According to Deutsche, GM's strong quarterly performance and positive outlook demonstrate the benefit from its "proactive actions to transform the business, right size its costs and boost profitability."

Its new target price suggests significant upside potential, which could be unlocked as the carmaker continues to demonstrate "solid" operational execution, DB added.

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