General Motors Stock Price Predicted to Reach $200
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Stock Growth Potential: General Motors' current share price of approximately $87 would need to rise by 130% to reach $200 by the end of 2030, implying an annual growth rate of about 18%, reflecting optimistic market expectations for its future performance.
- Share Buyback Plan: GM's new buyback authorization is expected to reduce the outstanding share count by about 8%, and if this trend continues through 2030, the share count could decline by one-third, thereby boosting the stock price and enhancing investor confidence.
- Electric Vehicle Profitability Outlook: Although the EV segment is currently unprofitable, CEO Mary Barra indicated that EV adoption is expected to progress steadily, and the company anticipates achieving EV profitability without government incentives, showcasing strong market adaptability.
- Software Revenue Growth: GM's software and services revenue is projected to grow by 40% to $7.5 billion, and this high-margin revenue stream is expected to significantly improve the company's financial health, serving as a crucial factor in driving stock price appreciation.
Analyst Views on GM
Wall Street analysts forecast GM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GM is 82.06 USD with a low forecast of 48.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
16 Buy
1 Hold
1 Sell
Strong Buy
Current: 79.430
Low
48.00
Averages
82.06
High
100.00
Current: 79.430
Low
48.00
Averages
82.06
High
100.00
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.
