General Motors Company GM traded higher into Wednesay’s open after the company turned in better-than-expected financial results and raised its 2023 outlook.
The Detroit-based company reported fourth-quarter revenue of $43.1 billion, which beat average analyst estimates of $40.65 billion, according to Benzinga Pro. On a full-year basis, GM said revenue increased 23.4% to $156.7 billion.
Here’s what analysts have to say about GM’s positive earnings report.
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Goldman Sachs: Mark Delaney maintained a Buy rating on General Motors, but lowered the price target from $46 to $42.
Delaney noted while GM reported strong fourth quarter results ahead of expectations, the company is not out of the woods. The analyst noted that despite GM giving forward guidance ahead of Street estimates, the company is facing headwinds in terms of price and mix, as well as increased competition in the EV industry.
General Motors is targeting a low to mid-single digit EBIT margin in EVs by 2025, with the next 12-18 months being an important proof point for the strategy, Delaney noted.
Wedbush: Dan Ives maintained an Outperform rating on General Motors, and increased the price target to $46.
Ives mentioned that the company outperformed in both North America and international markets. For 2023, GM expects demand to remain strong and has provided guidance that surpasses the Street's expectations for adjusted EBITDA and EPS.
The automaker also plans to continue its shift to EVs with 9 new models set to launch in 2023 and a target of 400,000 unit bogey in EV production from 2022 to 1H24, the analyst said. The strong performance and guide from GM indicate a renaissance in EV growth for the company.
Morgan Stanley: Adam Jonas maintained an Equal Weight rating on General Motors, but raised the price target from $32 to $35.
The investment bank said while General Motors has plans to improve its returns and efficiency through its capital deployment, it believes the company has room to reduce expenditures as over 50% of GM's capex is related to EVs and AVs, which they estimate will only be 25% of GM's long-term revenue.
Price action: Shares of General Motors are trading 0.33% higher to $39.45, according to data from Benzinga Pro.
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