General Motors (GM) News Supports $100+ Stock - Citi

June 16, 2021 11:05 AM EDT
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Price: $52.23 +0.60%

Rating Summary:
    25 Buy, 7 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 5 | New: 36
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Citi analyst Itay Michaeli reiterated a Buy rating and $90.00 price target on General Motors (NYSE: GM) after the company raised H1’21 EBIT-adj. guidance to $8.5-9.5bln, and announced an EV/AV acceleration. The analyst said the news supports their view that the stock could see >$100 LT upside potential.

The analyst commented, "GM this morning raised its H1’21 EBIT-adj. guidance to $8.5-9.5bln (vs. $5.5bln originally), implying Q2 mid-point EBIT-adj. at ~$4.6bln vs. our $2.1bln estimate/consensus of ~$1.5bln. Besides the sizable beat, GM’s guide also implies Q2 EBIT-adj. could exceed Q1 despite semi disruptions. GM will update full-year guidance when it reports Q2, but we remain bullish on the H2+ outlook based on our new vehicle density survey, which suggested a ~2yr path to a ~20mln SAAR (vs. our ~18mln call last year)—Do They Want to Drive? Citi Survey Supports Path to 20mln SAAR. Besides a substantial guidance raise, GM also confirmed higher EV/AV investments through 2025 ($35bln vs. $27bln prior) and set an Investor Day for Oct 6-7—which we view as a clear catalyst opportunity to further reshape the narrative. Today’s news supports our conviction on the stock and we could see >$100 LT upside potential. GM
= Top Pick."

For an analyst ratings summary and ratings history on General Motors click here. For more ratings news on General Motors click here.

Shares of General Motors closed at $60.81 yesterday.

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