General Motors (GM) PT Raised to $85 at Citi, Sees Upside to $100
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Citi analyst Itay Michaeli raised the price target on General Motors (NYSE: GM) to $85.00 (from $70.00) while maintaining a Buy rating.
The analyst comments "Our new $85 price target, based on EV/EBITDAP, can also be derived in the following ways: (1) If we incorporate GM’s stake in Cruise (based on Cruise’s latest funding), our $85 target would value the rest of GM at 14.1x/11.5x ‘21E/’22E adj. EPS—with “adj. EPS” excluding U.S. pension income (for higher EPS quality) & Cruise losses, and including the 2021 guided semiconductor impact; (2) On a Sum-of-Parts, our $85 target can be derived by simply ascribing a ~15x est. P/E to the GM Truck Franchise—a highly warranted multiple given exceptional Pickup Truck fundamentals—plus a consensus valuation for GMF/China JVs ($12/share), with zero ascribed for Cruise, zero for the Non-Truck Franchise (where our EV DCF model suggests $13-50 value creation) and zero for GM’s other emerging assets (BrightDrop, Hydrotec). Given these considerations, we actually regard our $85 target to be on the conservative side, particularly given GM’s proven resilience in 2020."
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