Tigress Reiterates On General Motors Company As Shares Represent Attractive Risk/Reward Scenario

Tigress Financial Partners reiterated its Strong Buy rating on General Motors Company (NYSE: GM) in a report issued Wednesday.

Analyst Ivan Feinseth expressed that "GM’s strong product pipeline emphasizing the luxury Cadillac brand and a defined pathway to long- term cost savings left us feeling optimistic about GM’s future."

Feinseth noted that "GM’s profitability is largely dependent on high margin sales of luxury vehicles. According to GM’s estimates, the luxury automotive segment is expected to grow 36 percent by 2020, with much of that growth coming from China."

Cadillac is expected to be a major driver of Economic Profit through increased brand awareness and marketing efforts, according to the Feinseth.

The report observed that "GM’s profitability is at an inflection point. GM’s increasing utilization of global platforms is helping to lower the variable costs for parts."

Feinseth concluded that "shares of GM represent an attractive risk/reward scenario."

General Motors Company traded at $31.90 in the pre-market on Wednesday, up 0.41 percent.