General Motors (GM) is investing more than $71 million as part of its broader global expansion drive. Pasadena, California, will be home to a new campus that will house the automaker’s Advanced Design Center.
GM is relocating the campus from North Hollywood to Pasadena to take advantage of the much bigger 149,000 square foot capacity. In addition, GM hopes to recruit some of the top talent in the market, thanks to the facility’s proximity to some of the best design schools and top universities.
Additionally, the new campus will support the automaker’s ambitions on zero emissions, zero congestion, and zero crashes. It should also enhance the company’s pursuit of new opportunities in advanced technology and software integration areas. (See General Motors stock charts on TipRanks)
“Our positioning will allow us to attract dynamic candidates in fields that will bolster GM’s proven design capabilities and challenge conventional thinking of what our future portfolio of connected products and services can encompass,” said GM’s VP of Global Design, Michael Simcoe.
In addition to the Pasadena campus, GM is developing a Design West facility in Michigan, and has also announced plans to establish an advanced design center in China.
Wedbush analyst Daniel Ives last week reiterated a Buy rating on the stock with an $85 price target, implying 44.73% upside potential. The analyst is optimistic about the turnaround spearheaded by CEO Mary Barra that he expects to strengthen the company’s edge in the auto industry.
Ives stated, “With at least 20 new models of electric vehicles coming out within the next two years and 30 in the next three, 2021 serves as an inflection point for the legacy auto company as they are completely shifting focus towards an electric future.”
Consensus among analysts is a Strong Buy based on 14 Buys and 1 Hold. The average General Motors price target of $74.07 implies 26.12% upside potential to current levels.
GM scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.