General Motors Stock Upgraded To Buy At Nomura

By Claudia AssisMarketsMarketWatch Pulse

Analysts at Nomura on Monday upgraded General Motors Co. to buy from neutral, saying the car maker's exit "from long-struggling Europe is a major positive," one that will simplify GM's business structure and improve profitability. GM earlier Monday agreed to sell its European business to Peugeot maker's PSA Group for $2.3 billion. The European sale frees up resources, which GM could redeploy to develop next-generation powertrains and autonomous driving technologies "to maintain its competitive edge in the crucial North American market over the long term," the Nomura analysts said in a note. Shares of GM have gained more than 19% in the past 12 months, compared with gains of more than 18% for the S&P 500 index in the same period.

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