General Motors Plummets After Analyst Cuts Price Target to Zero
BloombergBy Greg Bensinger and Sarah Thompson
November 10, 2008
Nov. 10 (Bloomberg) -- General Motors Corp. plummeted 30 percent after a Deutsche Bank AG analyst downgraded the shares and cut the price target to zero.
GM lost $1.30 to $3.06 at 10:04 a.m. in New York Stock Exchange composite trading. Ford Motor Co. dropped 10 cents to $1.92. Detroit-based GM said Nov. 7 it may not have enough cash to operate this year.
"Even if GM succeeds in averting a bankruptcy, we believe that the company's future path is likely to be bankruptcy- like," Deutsche Bank's Rod Lache wrote today in a research note. The New York analyst lowered his recommendation on the shares to "sell" from "hold."
Barclays Capital cut GM to "underweight" from "equal weight." "We believe any government assistance would likely significantly dilute GM's equity," said analyst Brian Johnson, who set a share-price target of $1.
To contact the reporter on this story: Greg Bensinger in New York at gbensinger1@bloomberg.net;
Sarah Thompson in London at sthompson17@bloomberg.net
Last Updated: November 10, 2008 10:06 EST