On Oct 23, major Wall Street analysts update their ratings for $General Motors (GM.US)$, with price targets ranging from $38 to $85.
Morgan Stanley analyst Adam Jonas maintains with a sell rating, and maintains the target price at $42.
J.P. Morgan analyst Ryan Brinkman maintains with a buy rating.
BofA Securities analyst John Murphy maintains with a buy rating, and maintains the target price at $85.
Barclays analyst Dan Levy maintains with a buy rating, and adjusts the target price from $64 to $70.
Wells Fargo analyst Colin Langan maintains with a sell rating, and adjusts the target price from $33 to $38.
Furthermore, according to the comprehensive report, the opinions of $General Motors (GM.US)$'s main analysts recently are as follows:
General Motors maintains its trajectory of strong gross margin earnings and robust free cash flow generation. While the market will determine the multiple it ultimately receives, it is argued that it 'clearly deserves to be far more than 5x.'
The firm conveyed increased confidence in General Motors' prospects leading into 2025. It was noted that the company delivered an exceptionally strong performance in the third quarter, akin to a top-tier athlete's performance, as it continues to deliver impressive results quarter after quarter. This success is attributed to the company's steadfast focus on refining its internal combustion engine (ICE) and electric vehicle (EV) offerings, alongside strategic debuts and a prioritized approach to profitability.
General Motors has experienced a rise in stock value of approximately 10% following the reaffirmation of its intention to repurchase around 100 million shares. Additionally, a third-quarter EPS beat and an increase in gross margin have led to an upward revision of the full-year EBIT guidance. Nevertheless, there remain risks associated with pricing, volumes, and the mix of battery electric vehicles, all of which influence the conservative guidance for the fourth quarter. Warranty matters have also emerged as a new area of concern.
The automotive sector has experienced a retreat in share prices, and despite a reduction in consensus numbers, there continues to be a downside risk to estimates given the prevailing bearish macroeconomic sentiment. Amidst concerns of a deflationary period succeeding post-pandemic price increases, it appears that General Motors is well-positioned to withstand a potential severe price deflationary scenario.
Here are the latest investment ratings and price targets for $General Motors (GM.US)$ from 9 analysts:
Note:
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