General Motors’ (GM) U.S. deliveries declined 218,195 vehicles year-over-year to 446,997 vehicles in the third quarter due to semiconductor supply chain disruptions and historically low inventories.
Based out of Michigan, General Motors designs, produces and sells cars, trucks and automobile parts. Its brands include Chevrolet, Buick, GM and Cadillac, among others. Shares of the company rose 0.8% to close at $53.13 on Friday.
For the second half of the year, the company expects wholesale volumes in North America to be lower by about 200,000 units from the first half due to supply chain disruptions in Malaysia. (See General Motors stock chart on TipRanks)
The Executive Vice-President and President of GM North America, Steve Carlisle, said, “The semiconductor supply disruptions that impacted our third-quarter wholesale and customer deliveries are improving. As we look to the fourth quarter, a steady flow of vehicles held at plants will continue to be released to dealers, we are restarting production at key crossover and car plants, and we look forward to a more stable operating environment through the fall.”
Meanwhile, the company has reiterated its 2021 financial outlook as it works towards mitigating the impacts of the Chevrolet Bolt EV recall and semiconductor shortage.
On October 1, Credit Suisse analyst Dan Levy maintained a Buy rating on the stock with a price target of $75 (41.2% upside potential). The analyst expects the company to highlight its growth opportunities at the upcoming investor day, making the case for multiple expansions.
Overall, the stock has a Strong Buy consensus rating based on 13 Buys and 1 Hold. The average General Motors price target of $71.93 implies 35.4% upside potential. Shares have gained 71.6% over the past year.
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