Citi Outlines What The Market Is Missing On General Motors

Citi analysts are bullish on General Motors Company GM, adding the firm to its "Citi Focus List" and reiterating its Buy rating. Underscoring the note, the analysts said that the market is missing some important catalysts for the company in both domestic and international markets.

Notably, Citi argued that GM's path to higher margins should be clear by summer due to the significance of the 2016 and 2017 product cycles. Citi pointed out that GM has the oldest car/CUV lineup in the industry, giving GM easier profit comparisons on a year-over-year basis.

In global markets, Citi said that GM should see accelerated European auto sales recovery and a Russian exit that will help GM Europe return to profitability next year. Combined with tailwinds from lower raw materials, and Citi argued that this is a perfect storm for a higher stock price.

Into the future, Citi also said there is potential for growth given OnStar and the "rise of the connected car," which will add $350 million in profit by 2018.

Shares of General Motors recently traded at $36.56, up 0.74 percent.