General Motors, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Joseph Spak from UBS upgraded the rating on the stock to a Buy and gave it a $81.00 price target.
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Joseph Spak has given his Buy rating due to a combination of factors that suggest a positive outlook for General Motors. He anticipates that GM’s North American margins can return to their target range of 8-10%, significantly higher than the current consensus of 6-6.5%. This optimism is based on potential tariff relief, lower emissions standards, and a richer vehicle mix, which could enhance profitability.
Moreover, Spak highlights GM’s strong free cash flow profile and capital allocation strategy, which supports significant share buybacks. The stock’s valuation is also considered attractive, with a 2025 free cash flow yield of approximately 14%. Additionally, Spak sees potential positive catalysts in upcoming regulatory rulings and official guidance, which could further boost investor confidence in GM’s future performance.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $67.00 price target.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GM in relation to earlier this year.