General Motors

General Motors Could Hit New All-Time High on Strong Q1 Earnings; Target Price $69

General Motors, the largest US-based automaker, is expected to report its first-quarter earnings of $1.02 per share, which represents year-over-year growth of over 64% from $0.62 per share seen in the same quarter a year ago.

The Detroit, Michigan-based company would post revenue growth of about 2% to around $33.3 billion.

General Motors’s better-than-expected results, which will be announced on Wednesday, May 5, would help the stock hit new all-time highs. General Motors shares rose over 37% so far this year. The stock traded nearly flat at $57.35 on Monday.

General Motors Stock Price Forecast

Twelve analysts who offered stock ratings for General Motors in the last three months forecast the average price in 12 months of $69.42 with a high forecast of $85.00 and a low forecast of $62.00.

The average price target represents a 20.81% increase from the last price of $57.46. Of those 12 analysts, 11 rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $80 with a high of $120 under a bull scenario and $32 under the worst-case scenario. The firm gave an “Overweight” rating on the auto manufacturer’s stock.

Several other analysts have also updated their stock outlook. Credit Suisse raised the target price to $72 from $68. BofA lifted the price objective to $80 from $72. UBS increased the target price to $75 from $50. Daiwa Capital Markets upped the price target to $67 from $60. Jefferies raised the target price to $62 from $50.

Analyst Comments

“We are OW based on General Motors’ (GM) diversified portfolio, with multiple ways for GM to enhance shareholder value, through: EVs, ICE and Autonomy. GM also has leading North American margins, generates strong cash flow, and has a robust balance sheet,” noted Adam Jonas, equity analyst at Morgan Stanley.

“We believe that the market is underestimating the SOTP of the GM enterprise via: 1) Legacy ICE, 2) GM EV, 3) GM’s Ultium Battery business, 4) China JVs, 5) GM Finco, 6) GM Cruise, 7) hidden franchise value in brands such as Corvette and 8) GM Connected Services. GM management has a proven track record to allocate capital away from structurally challenged areas towards re-positioning the business model.”

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