General Motors price target lowered to $40 from $46 at Wedbush

Wedbush lowered the firm’s price target on General Motors to $40 from $46 and keeps an Outperform rating on the shares after the company provided an update to its business and gave further guidance and clarity on the company’s trajectory looking forward now with UAW agreements fully out of the way. With clarity on labor costs and production back on track, GM is returning to its capital allocation framework by repurchasing $10B of common stock through an accelerated share repurchase program, raising its common stock dividend by 33% starting in 2024 and reinstating it FY23 earnings guidance. Ultimately, while not the most ideal situation for the company amidst the massive EV transformation seen this decade, Wedbush believes GM has now taken back the reins on this situation with a clear vision forward and remains confident in the company’s trajectory heading into FY24 with profitability and EV production the two largest focuses looking forward.