General Motors (NYSE: GM) shares are on the rise today, thanks to an analyst upgrade. Morgan Stanley’s Adam Jonas bumped his rating on GM from Hold to Buy and increased the price target from $35 to $38, following the company’s impressive Q1 earnings and raised guidance. Although there are concerns about the shrinking internal combustion engine market and EVs’ current lack of profitability, Jonas thinks these issues are already factored into GM’s stock price, which has dropped about 50% since its all-time high in January 2022.
Jonas and his colleagues observed that GM’s internal combustion business is proving more robust and resilient than they initially thought, leading them to expect a slower shift toward EVs in the U.S. market. Furthermore, GM seems to have implemented disciplined actions and showcased additional cost-cutting measures during the quarter. As for EVs, Morgan Stanley believes GM might be taking a more measured ramp-up strategy and a flexible approach, adjusting its electric offerings based on what customers can afford and broader market conditions.
Overall, Wall Street analysts have a consensus price target of $50.08 on GM stock, implying almost 49% upside potential, as indicated by the graphic above.
