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Aug. 17, 2020, 11:28 a.m. EDT

GM's stock rallies as Deutsche Bank pushes for EV spinoff

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By Tomi Kilgore
GM F SPX

Shares of General Motors Co. /zigman2/quotes/205226835/composite GM 0.00% rallied 3.1% in morning trading Monday, putting them on track for a 2-month closing high, after Deutsche Bank analyst Emmanuel Rosner put the automaker on the firm's "Catalyst Call Buy List," citing the potential for an electric-vehicle spinoff. Rosner noted that during GM's conference call with analysts after the second-quarter earnings report on July 29, GM Chief Executive Mary Barra responded to his question about a potential spinoff by saying that GM was evaluating that option. Rosner believes an EV spinoff would force the market to recognize its EV technology and upcoming vehicle lineup, "unlock considerable shareholder value, give the new entity access to cheap capital and provide the new entity with the ability to attract high-caliber talent. He said an evaluation of potential valuation outcomes could value GM's stock between $28 to up to $93, which represents a decline of 2.5% to a more than tripling (up 224%) from current levels. The stock has lost 21.6% year to date, while shares of rival Ford Motor Co. /zigman2/quotes/208911460/composite F -0.39% have dropped 25.8% and EV-maker Tesla Inc.'s stock has rocketed fourfold (up 322.6%), and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.08% has gained 4.8%.

Read the full story:
Tesla’s stock shoots up toward another record after Wedbush analyst boosts target to 4th highest on the Street

/zigman2/quotes/205226835/composite
US : U.S.: NYSE
$ 49.37
0.00 0.00%
Volume: 14.17M
Sept. 21, 2021 4:00p
P/E Ratio
5.71
Dividend Yield
0.00%
Market Cap
$71.67 billion
Rev. per Employee
$790,226
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/zigman2/quotes/208911460/composite
US : U.S.: NYSE
$ 12.77
-0.05 -0.39%
Volume: 60.45M
Sept. 21, 2021 4:04p
P/E Ratio
14.74
Dividend Yield
0.00%
Market Cap
$51.21 billion
Rev. per Employee
$683,570
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/zigman2/quotes/210599714/realtime
US : S&P US
4,354.19
-3.54 -0.08%
Volume: 1.91B
Sept. 21, 2021 5:12p
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