General Motors Co (GM) announced last week that all workers at one of its plants in Brazil would be put on furlough for 20 days during March in relation with maintenance and updating of factory lines. As a result, production at the plant will be suspended.
The facility, which is located in Gravatai in the state of Rio Grande do Sul, manufactures the Chevrolet Onix compact car.
General Motors shares closed higher for the fourth time in the past ten trading sessions in New York on Friday. The stock went up 1.44% ($0.73) to $51.33, after touching an intraday low at $49.92, or a price level not seen since February 23rd ($49.37).
Shares of General Motors Company have risen 23.27% so far in 2021 compared with a 1.47% gain for the benchmark index, S&P 500 (SPX).
In 2020, General Motors’ stock went up 13.77%, thus, it underperformed the S&P 500, which registered a 16.26% gain.
According to Edson Rosso, a union representative in Gravatai, some workers could be put on furlough for longer than 20 days.
According to Rosso, while the US auto maker will resume production on March 20th, some workers will be furloughed for up to five months as a way to slow down production amid a parts shortage that has led to auto output disruption worldwide.
Analyst stock price forecast and recommendation
According to CNN Money, the 16 analysts, offering 12-month forecasts regarding General Motors Company’s stock price, have a median target of $64.50, with a high estimate of $85.00 and a low estimate of $50.00. The median estimate represents a 25.66% upside compared to the closing price of $51.33 on February 26th.
The same media also reported that at least 16 out of 19 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 2 – as “Hold”.