General Motors (GM) announced that it has collaborated with Goldman Sachs and Mastercard to roll out a co-branded reward-based credit card.
The automaker said Goldman Sachs will be the issuing bank for the credit card, which is planned to be launched in September. Meanwhile, Mastercard (MA) will remain the network provider of the cards.
Chuck Thomson, GM’s general manager of retail sales and marketing support said, “We chose to partner with Goldman Sachs (GS) because of their proven ability to innovate.”
Last week, GM announced that it will roll out EV delivery vehicles under its new business unit named BrightDrop. Its first product, an electric pallet called EP1, will hit the Street in early 2021. (See GM stock analysis on TipRanks)
Following the announcement, Argus analyst Bill Selesky upgraded GM stock to Buy from Hold with a target price of $56 (12.1% upside potential). Selesky expects GM to benefit from its expansion into the electric and autonomous vehicle market.
Overall, the consensus among analysts is a Strong Buy based on 13 Buys and 1 Hold. The average analyst price target of $53.50 implies upside potential of about 7.1% to current levels. GM stock has gained about 44% in one year.
From TipRanks’ Smart Score system, the stock scores a “Perfect 10”, indicating that the stock has a strong chance of beating market expectations.
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