In a report released today, Joseph Spak from UBS reiterated a Buy rating on General Motors, with a price target of $81.00.
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Joseph Spak’s rating is based on a combination of factors that highlight General Motors’ potential for growth and profitability. One of the key reasons for the Buy rating is the anticipated improvement in GM’s earnings power, driven by a favorable regulatory environment and strong free cash flow yield, which could enhance capital returns. Despite some skepticism regarding the aggressive assumptions in the 2026 EBIT bridge, Spak believes that GM has multiple strategies to achieve close to 8% margins in North America by 2026.
Additionally, potential policy changes, such as the reduction of tariffs in South Korea and possible relaxed tariffs on Mexico and Canada, present significant upside opportunities that are not yet fully accounted for in the forecasts. While some regulatory benefits are still pending finalization, Spak remains optimistic about their eventual implementation and the positive impact they could have on GM’s financial performance. Overall, the combination of these factors supports a positive outlook for GM, justifying the Buy recommendation.
In another report released today, J.P. Morgan also reiterated a Buy rating on the stock with a $80.00 price target.