Market Overview

Is GM Finally Getting The Props It Deserves?

Is GM Finally Getting The Props It Deserves?

It’s like that movie scene when the alpha rolls up in his polished Corvette, revs his engine with a wink and the ladies swoon.

Except in this scenario, ruggedly handsome General Motors Company (NYSE: GM) is winning the Street without even touching the gas.

Ahead of a Monday announcement heralding 20 new electric vehicles by 2023, charmed investors pressed GM to all-time highs, and management convinced Citigroup of the company’s unexpected leadership in self-driving technology.

“We walked away with even more confidence [in] our GM transformation thesis particularly as it relates to future autonomous mobility,” analyst Itay Michaeli wrote Monday of his meeting with executives.

Meanwhile, Deutsche Bank reiterated belief in the traditional automaker driven by its materially significant potential to deploy autonomous vehicles within quarters rather than previously expected years. The analysts admitted their early estimates for GM’s Mobility segment to be “significantly understated” and confirmed the unit’s potential to drive upside.

“GM did not refute the logic that we used to conclude that this business will most likely be spun off to shareholders,” Deutsche Bank’s Rod Lache, Shreyas Patil and Mike Levin wrote in a note.

Michaeli corroborated GM’s leadership in the emerging fleet theme.

Deutsche Bank and Citi both reiterated Buy ratings on the stock with respective price targets of $51 and $53. At the time of publication, shares were trading up 4.7 percent at a rate of $42.28.

Related Links:

Economics Of Autonomy: The Big 3, Trucking And Insurance

Gene Munster Goes The Distances On Tesla: A Look At Short- Vs. Long-Term Expectations

Image Credit: By MJCdetroit - Own work, CC BY 3.0, via Wikimedia Commons

Latest Ratings for GM

Nov 2019MaintainsOverweight
Oct 2019MaintainsNeutral
Oct 2019MaintainsBuy

View More Analyst Ratings for GM
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas Reiteration Travel Top Stories Analyst Ratings Tech Trading Ideas Best of Benzinga


Related Articles (GM)

View Comments and Join the Discussion!

Limited Upside Seen For Parker-Hannifin, Analyst Steps To The Sidelines

Wells Fargo Lays Out The Bull Case For Great Plains And Westar Energy