General Motors' stock has 40 percent return potential: Barron's

The GM logo is seen at the General Motors Lansing Grand River Assembly Plant in Lansing, Michigan October 26, 2015. Photo taken October 26. REUTERS/Rebecca Cook·Reuters

NEW YORK (Reuters) - Shares in General Motors Co (GM.N) could return as much a 40 percent, including a 5 percent dividend yield, a year from now when investors start to focus on 2017 per share earnings of $6, according to financial weekly Barron's on Sunday.

Barron's says GM's stock should be up "far more" year-to-date than the 2 percent it has gained, pointing out that Wall Street's earnings consensus has risen 11 percent this year and 16 percent for 2016.

The chief worry among GM's 'skeptics' is that the company's profits are nearing a peak, the report says. Barron's believes this is unlikely and says the next economic downturn could prove that GM can be profitable in good years and bad.

(Reporting by Edward Krudy; Editing by Andrea Ricci)

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