General Motors (NYSE:GM) already pulled out a win with its earnings report earlier today, but it kept the good news coming. In fact, GM is up nearly 8% after it also released some new product plans that represent a bit of a sea change for the legacy automaker. Previously, GM was focusing on gas vehicles and electric vehicles, but with the investor call that accompanied the earnings report, GM revealed that it was bringing more plug-in hybrid vehicles to the fore.
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The move is designed to serve several purposes, starting with bringing more options to consumers and, from there, meeting new fuel economy regulations issued at the federal level. Hybrid vehicles have come under fire previously due to issues of consumer demand, but given that electric vehicles have also been seen struggling with consumer demand, bringing out a limited number of hybrids alongside the electrics might not be a bad idea.
Hoping on a Long Shot
So far, GM is upbeat about its chances in 2024, thanks largely to what it’s termed a “resilient” economy in the United States. That is one way to put it, certainly, but given what we know about the holiday shopping season that only recently came to a close, it’s less a plan than it is a hope. However, GM does have a secret weapon herein: it notes that the consensus estimates for the job market, the auto sales market, and the overall economy expect ongoing resiliency. So, for GM to ignore consensus—even if it turns out to be wrong—likely wouldn’t be the prudent move.
What Is the Target Price for GM?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on 13 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 1.71% loss in its share price over the past year, the average GM price target of $46.63 per share implies 21.91% upside potential.
