Himanshu Patel
Himanshu Patel
belief company cost earnings heightens likely meaningful reassure rebound targets
The company's specificity on 2006 cost targets ... is likely to reassure the market, and heightens our belief that the company will see a meaningful earnings rebound in 2006.
controls given remains strength
The long-term outlook, particularly given end-market strength in the controls business, remains robust.
diesel european production slowing weigh western worries
However, near-term worries on slowing diesel penetration and Western European production could weigh on the stock.
bringing cap caps forcing forth gm inflation issue management similar suggest talks top
By forcing a health-care inflation cap for salaried workers, GM is bringing forth the issue of similar caps for hourly workers, which our talks with (GM) management suggest is a top priority.
likely management market parameters putting
The market is likely to be reassured that management is now putting firmer parameters around 2006 performance.
beat britain expecting fairly forecasts france guidance holding key markets reaffirm reasonably share upbeat
We are expecting PSA to beat their forecasts and to reaffirm fairly upbeat guidance for 2003. Their key markets of Britain and France are holding up well and their market share is reasonably healthy.
accounting change concerns internal issues none raise thesis
While none of these issues are enough to change our thesis on GM, they do raise our concerns on the company's internal accounting controls.
expect ford gm notable pickup segment share
We expect GM to take notable share from Ford in the full-size pickup segment in 2006 and, particularly, in 2007.
billion cash corporate largely light robust sale
We see a $2 billion cash injection as meaningful, even in light of GM's robust corporate liquidity. This sale was largely unanticipated by the market.
billion cash corporate largely light robust sale
We see a $US2 billion cash injection as meaningful, even in light of GM's robust corporate liquidity. This sale was largely unanticipated by the market.
assist care extract gm health likely opportunity risk
We think GM will see it as more of an opportunity than a risk to assist in a Delphi bailout, as it will likely be able to extract sizable UAW health care concessions in return,
european high markets material prices pricing provide raw remains tire truck weak
While tire pricing remains strong, high raw material prices and potentially weak high-margin markets (North American and European replacement truck tire markets) could provide offsets.
admittedly ahead given performance potential recent reluctant weak
While fundamentals are admittedly weak, given the stock's weak recent performance, we are reluctant to get incrementally bearish, particularly ahead of a potential restructuring announcement.
correction maintain overweight recent safety vehicle
We maintain our overweight (rating), as we think a recent correction in this well-diversified vehicle safety supplier has been unjustified.