General Motors

Shares of General Motors Co. were driven higher in early Tuesday trading, after Deutsche Bank turned bullish on the automaker, citing the recent closing of its robotaxi business and its “aggressive” repurchase activity. “While there are concerns about the cycle and potential policies of the new Trump administration, our view is that these risks are already very well-known,” analyst Edison Yu wrote in a note to clients, adding that there was room for “positive surprises.” Read: How GM’s self-driving strategy is evolving as it gives up on Cruise business. Yu raised his rating on the GM’s stock (GM) to buy from hold. He raised his price target to $60 from $56, with the new target implying a roughly 16% upside from current levels. The stock climbed 1.6% in morning trading. “With GM stock having outperformed Ford significantly last year, we could envision 2025 being directionally similar,” Yu wrote. GM shares […]

In the last couple of years, General Motors has been an aggressive buyer of its own stock thereby sending about $20 billion back to shareholders via share repurchases. The company will keep shoveling cash back to its shareholders next year, CFO Paul Jacobson says. Jacobson reiterates that GM plans to spend another $5 billion or so on buybacks early next year to get its share count under 1 billion. That’s just the next mile marker, not the end of the buyback cruise, he adds. GM’s stock trades on a low multiple, a reflection of investors’ belief that the company’s long-term earnings power is in the gas-powered vehicle business, and skepticism about the company’s prospects in EVs and autonomous robotaxis. So, under Jacobson, GM has responded by giving investors another thing they love: cash. GM up 4.2% in early trading.

GM Releases 2024 First-Quarter Results and Raises Full-Year Guidance PR Newswire DETROIT, April 23, 2024 DETROIT, April 23, 2024 /PRNewswire/ — General Motors Co. (NYSE: GM) today reported first-quarter 2024 revenue of $43.0 billion, net income attributable to stockholders of $3.0 billion and EBIT-adjusted of $3.9 billion. GM is also updating its 2024 full-year earnings guidance: Updated 2024 Guidance Previous 2024 Guidance ————————- ————————- Net income attributable $10.1 billion – $11.5 $9.8 billion – $11.2 to stockholders billion billion EBIT-adjusted $12.5 billion – $14.5 $12.0 billion – $14.0 billion billion Automotive operating $18.3 billion – $21.3 $18.0 billion – $21.0 cash flow billion billion Adjusted automotive free $8.5 billion – $10.5 $8.0 billion – $10.0 cash flow billion billion EPS-diluted $8.94 – $9.94 $8.50 – $9.50 EPS-diluted-adjusted $9.00 – $10.00 $8.50 – $9.50 GM’s 2024 financial guidance includes anticipated capital spending of $10.5 billion – $11.5 billion, inclusive of investments

General Motors (GM) reported Q1 adjusted earnings Tuesday of $2.62 per diluted share, up from $2.21 a year earlier. Analysts polled by Capital IQ expected $2.12. Revenue for the quarter ended March 31 was $43.01 billion compared with $39.99 billion a year earlier. Analysts polled by Capital IQ expected $41.82 billion. The company raised its full-year adjusted EPS outlook to between $9 and $10, from the previous range of $8.50 to $9.50. Analysts polled by Capital IQ expect $9.02.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month target by $1 to $45, based on a ’25 P/E of 5.0x, a justified discount to historical averages. We increase our adjusted EPS estimates to $9.70 from $8.80 for ’24 and to $9.00 from $8.50 for ’25. GM posts Q1 adjusted EPS of $2.62 vs. $2.21 (+19%), well ahead of the $2.11 consensus. The beat was driven by a stronger-than-expected top line, as revenue rose 7.6% to $43.0B ($1.2B above consensus) on higher prices, partially offset by a 2.5% sales volume decline. GM increased 2024 adjusted EPS guidance to $9.00-$10.00 from $8.50-$9.50 (current consensus = $9.02). While the beat and raised guidance were positives, we remain at a Hold on GM, as we think the company could lose additional market share in the

General Motors’ (GM) “well-managed” core business continues to underpin its future-proofing strategy of accelerating investments in electric and autonomous vehicles, BofA Securities said in a note Tuesday. “GM’s liquidity levels should be sufficient to manage through volatility in the macro environment, while also proactively investing for the future and returning value to shareholders,” the brokerage said. Following General Motors’ solid Q1 results, the brokerage said the company did not disappoint investors, who were looking for an upside to 2024 guidance. General Motors raised its full-year adjusted EPS outlook to between $9 and $10, from the previous range of $8.50 to $9.50, after reporting forecast-beating Q1 earnings. BofA reiterated its buy rating on the stock and a price target of $75.

General Motors Company (NYSE:GM) shares are trading higher on Tuesday after raising its outlook for FY24, following a first-quarter beat. General Motors projects adjusted earnings per share of $9.00 – $10.00, higher than the prior view of $8.50 – $9.50. According to Wedbush analyst Daniel Ives, the company is focusing heavily on profitability, with expenses continuing to be a big priority. This was a major “prove me” quarter for General Motors, which shows the long-awaited turnaround for the company’s CEO, Mary Barra. Importantly, honing in on the EV transformation, the company expects to be EV variable margin positive in the second half of the year, with at least a 60-point EBIT margin improvement this year and mid-single digit EBIT EV margin in 2025, including the benefits from the clean energy tax credits. Ives reiterated an Outperform rating on the stock with a price forecast of $45. BofA Securities analyst John Murphy said in a new investor note

General Motors Co. (NYSE:GM) and its dealers increased retail sales by 6% year-over-year and delivered 594,233 vehicles in the U.S. in the first quarter of 2024, down 1.5% year-over-year due to lower fleet deliveries. GM continued its industry leadership in full-size pickup, full-size SUV and affordable small SUV sales, and its scaling of Ultium Platform EV production is on track. “Our brands are all performing well,” said Marissa West, GM senior vice president and president, North America. “GM gained retail market share year-over-year with strong mix and pricing, our inventories are in good shape heading into the spring, and production and deliveries of Ultium Platform EVs are rising, led by the Cadillac LYRIQ. We’re on plan.”

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month target to $44 from $38, based on a 2025 P/E of 5.2x, a justified discount to historic averages. We lower our 2024 EPS estimate to $8.80 from $8.90 but leave 2025’s unchanged at $8.50. GM posted Q1 U.S. vehicle sales of 594,233 units (-1.5% Y/Y), well below the industry’s expected Y/Y sales growth of 5.5% for Q1, according to Cox Automotive estimates. EVs acted as a drag on overall volumes, declining by 20.5% Y/Y in Q1. Notably, dealership inventories of GM vehicles hit 534,479 units at the end of March, up 17% from year-end 2023 levels, and the highest level since 2020. With inventories rising rapidly, we expect new vehicle prices to remain under pressure and incentives to continue increasing. Furthermore, Q1 results

Mizuho analyst Vijay Rakesh maintains General Motors with a Buy and raises the price target from $44 to $48.

General Motors (GM) is halting sales of its 2024 model year GMC Colorado and Canyon mid-size trucks for the time being to solve software quality issues, Reuters reported Tuesday. The company has identified a fix for the issues, which is being implemented, and shipments began Monday to dealers, according to the report. GM was quoted as saying in a statement that it expects the hold on sales to be lifted “shortly.” GM did not immediately respond to MT Newswires’ request for comment. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

General Motors (NYSE:GM) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/15/2024 125.18% Tigress Financial $86 → $88 Maintains Strong Buy 01/31/2024 15.15% Wedbush $40 → $45 Maintains Outperform 01/31/2024 38.18% RBC Capital $52 → $54 Maintains Outperform 01/31/2024 27.94% Goldman Sachs $45 → $50 Maintains Buy 01/31/2024 -28.35% Wells Fargo $27 → $28 Maintains Underweight 01/24/2024 12.59% Barclays $37 → $44 Maintains Overweight 01/24/2024 2.36% Redburn Atlantic → $40 Initiates Coverage On → Neutral 01/04/2024 — Wolfe Research Upgrades Peer Perform → Outperform 12/04/2023 143.09% Citigroup $90 → $95 Maintains Buy 12/04/2023 5.68% HSBC → $41.3 Initiates Coverage On → Buy 12/04/2023 7.47% Mizuho $38 → $42 Upgrades Neutral → Buy 12/01/2023 38.18% RBC Capital $48 → $54 Maintains Outperform 11/30/2023 2.36% Wedbush $46 → $40 Maintains Outperform 11/30/2023 -30.91% Wells Fargo $25 → $27 Maintains Underweight 11/01/2023 -5.32% Barclays →