GM stock gets big boost on analyst upgrade

An analyst from Merrill Lynch had good things to say about General Motors' future prospects, and the automaker's stock leaped nearly 10 percent on the news, closing at $26.51-- a substantial increase over its recent low of $18.33, but still a long ways away from the Kerkorian-fueled high of $37.70.

GM's stock was upgraded to a "Buy" from "Neutral," and its target price got a bump to $37/share based on perceived progress in slashing headcount by 30,000 blue-collar workers. The capacity reductions are projected to result in a savings of approximately $4/share, which would bump yearly profits to $5.25/share (or just shy of $3B total) by 2008, according to the crystal ball in question.

[Source: AP via Yahoo!]

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