General Motors Co (GM) announced on Monday that its manufacturing operations in China would be resumed on February 15th, as local authorities have been trying to contain a coronavirus outbreak that has so far caused the deaths of over 1000 people.
General Motors shares closed higher for the sixth time in the past ten trading sessions in New York on Monday. The stock went up 1.84% ($0.62) to $34.25, after touching an intraday high at $34.29, or a price level not seen since February 6th ($35.10).
Shares of General Motors Company have retreated 6.42% so far in 2020 compared with a 3.75% gain for the benchmark index, S&P 500 (SPX).
In 2019, General Motors’ stock went up 9.42%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.
A spokesperson for GM said that the auto maker would have a staggered start to production across its facilities with Chinese partners during the upcoming two weeks. It would also depend on the readiness of supply chain and product inventory needs, the person added.
On Chinese soil, General Motors has a joint venture with SAIC Motor Corp, which is based in Shanghai and is focused on manufacturing of the Buick, Chevrolet and Cadillac brands.
The US auto maker also has a joint venture with SAIC Motor Corp and Guangxi Automobile Group, which is based in Liuzhou and is focused on production of no-frills minivans.
Analyst stock price forecast and recommendation
According to CNN Money, the 15 analysts, offering 12-month forecasts regarding General Motors Company’s stock price, have a median target of $46.00, with a high estimate of $60.00 and a low estimate of $34.00. The median estimate represents a 34.31% upside compared to the closing price of $34.25 on February 10th.
The same media also reported that at least 12 out of 17 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 3 – as “Hold”.