Citi has launched coverage on General Motors (GM, Financial), assigning a Buy rating and setting a price target of $62 for the stock. This move comes as the investment firm examines the broader landscape of auto manufacturers and the auto parts and equipment sector.
The analysis highlights the prevailing uncertainty from trade tariffs, which is expected to create volatility in U.S. light vehicle sales until a resolution is reached. Despite these concerns, Citi notes that sales in March have exceeded expectations, and the positive momentum is carrying over into April.
Citi's research suggests that once the trade situation stabilizes, demographic trends in the U.S. will support a demand for 16 to 18 million car units annually. This projection represents an increase of approximately 10% over the anticipated 2024 figures, which would necessitate an increase in inventory levels. Such a scenario is likely to create a favorable production environment for automakers.
The firm suggests that automobile dealers are well-positioned to manage the current uncertainties and expresses a preference for GM over Ford (F). The belief is that GM possesses strategic options to handle the tariff implications effectively in both the intermediate and long term, thus providing stronger financial performance potential within the auto sector.
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 $54.75 with a high estimate of $105.00 and a low estimate of $34.00. The average target implies an upside of 21.24% from the current price of $45.16. 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 26.66% from the current price of $45.16. 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.
