Emily Elconin/Bloomberg/Getty Images
The Key Takeaways
- General Motors shares rose Tuesday after Deutsche Bank analysts upgraded the automaker's stock ahead of its fourth-quarter earnings report.
- Deutsche Bank cited GM's recent "strategic moves" like ending the Cruise robotaxi program and restructuring its struggling China business as positives.
- The analysts also said they believe GM's stock can continue to outperform rival Ford's in 2025.
General Motors shares rose on Tuesday, after analysts at Deutsche Bank upgraded its stock in advance of the company’s fourth-quarter results report.
The analysts upgraded the Chevrolet and Cadillac parent's stock to a "buy" rating from a "hold," and lifted their price target to $60 from $56, a premium of about 18% from GM's closing level Friday.
Analysts said that they expect GM to continue outperforming Ford (F)’s share price in 2025. “For 4Q itself, we think GM will report toward the high end of its guidance range, while Ford should be more in line,” The writer wrote.
The cancellation of the cruise program in China is seen as a positive move
Analysts cited recent decisions by GM such as halting the development of Cruise robotaxis, and restructuring their struggling operations in China as strategic steps that were positive.
They also said the company's "consistent track record of execution, and aggressive share buyback trajectory" gives them confidence in the stock despite potentially harmful policies to the electric vehicle industry that could come from the new Trump administration.
Analysts expect GM’s projections for EBIT to remain flat in the coming fiscal year while Ford may lower their guidance. GM’s Q4 earnings will be announced before the bell of Jan. 28. Ford’s results are likely to come after market close on Feb. 5th.
GM stock rose 5% in value on Tuesday, and has risen by 50% within the last year.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
