Deutsche Bank Upgrades General Motors Amid Pullback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
- Rating Upgrade: Deutsche Bank upgraded General Motors from hold to buy and raised its price target from $83 to $90, indicating a 17.1% upside from Monday's close, reflecting confidence in the company's future performance.
- Market Reaction: GM shares have dipped over 2% since the onset of the Iran war, primarily driven by concerns over rising shipping costs and potential supply shocks; however, analysts view this as an attractive entry point that could lead to a multi-year re-rate opportunity.
- Profit Drivers: While the outlook for 2026 is less stable than a few months ago, analysts emphasize that many of GM's profit drivers remain within the company's control, including the rollout of next-generation trucks in 2027, which could further boost stock performance.
- Software and Services Growth: Deutsche Bank highlights that GM's software and services segment is on track for growth; although it currently represents a minor part of the profit and loss statement, its growth trajectory is expected to enhance the company's valuation multiple, showcasing potential in new business areas.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to rise
19 Analyst Rating
14 Buy
4 Hold
1 Sell
Moderate Buy
Current: 77.780
Low
57.00
Averages
95.06
High
122.00
Current: 77.780
Low
57.00
Averages
95.06
High
122.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI, Cruise and GM Financial. Its GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, its advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and its end-to-end software platform. The Company is also focused on investing in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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