UBS Starts GM with 'neutral' rating

UBS initiated coverage of General Motors (GM) with a 'neutral' rating and $37 price target, saying that the automaker has no near-term catalysts to move the stock.

The combination of cautious Q4 guidance, a weak North American product launch schedule, full-pension re-measurement at year end, aggressive breakeven targets in Europe and slowing growth in China cause us to believe GM lacks near-term catalysts required to move the stock, analyst Colin Langan wrote in a note to clients.

Langan, however, said the we cannot articulate a great reason to buy right now.

The analyst likes GM longer-term, saying that product launch schedule improvements in North America should drive market share stabilization in 2012, and this should allow GM to take better advantage of the Seasonally Adjusted Annual Rate recovery in its most profitable market.

Since 2006, GM has cut hourly headcount in the US by over 40 percent, lost 30 percent of capacity, and cut the number of brands to four from eight. GM has also substantially improved its liquidity, removing all of its US hourly Other Post-Employment Benefits (OPEB) obligations and moving to a net-cash position.

Recently, GM raised more than $23 billion in the world's largest IPO.

Shares of GM were up 3 cents at $33.92 on the NYSE.