General Motors (GM, Financial) has reported a significant surge in Buick sales, with a 39% increase in the first quarter thanks to a renewed lineup of compact SUVs. This growth has been largely driven by popular models such as the Envisa, Encore GX, and Envision SUV. However, this upward trend may face hurdles due to U.S.-imposed tariffs.
These three models, which contribute significantly to Buick's sales, are manufactured outside of the United States. The Envisa and Encore GX are assembled in South Korea, while the Envision SUV is produced in China. As a result, they are subject to tariffs that could potentially raise their retail prices by thousands of dollars, affecting affordability for consumers in the U.S. market.
This development creates uncertainty regarding the sustainability of Buick's sales momentum, as the increased costs could dampen demand. Despite the current success, the tariff situation poses a significant challenge for GM as it navigates these international trade barriers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for General Motors Co (GM, Financial) is $55.31 with a high estimate of $105.00 and a low estimate of $34.00. The average target implies an upside of 24.10% from the current price of $44.57. More detailed estimate data can be found on the General Motors Co (GM) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, General Motors Co's (GM, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for General Motors Co (GM, Financial) in one year is $57.20, suggesting a upside of 28.34% from the current price of $44.57. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the General Motors Co (GM) Summary page.
