General Motors price target raised to $45 from $40 at Argus

Argus analyst Bill Selesky raised the firm’s price target on General Motors to $45 from $40 and keeps a Buy rating on the shares. The company’s Q1 earnings decline vs. last year was largely due to smaller volumes and weaker product mix that was related to the UAW strike impact, higher Cruise expenses, EV inventory allowance adjustments and lower pension income, as these “more than offset” favorable pricing and benefits from the fixed-cost reduction program, the analyst tells investors in a research note. Argus adds however that based on the company’s latest guidance of $8.50-$9.50, which takes into consideration lower Cruise expenses, benefits from ongoing cost reduction programs and non-recurrence of the UAW strike, it is raising its 2024 EPS view on General Motors to $9.00 from $6.62.