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In-Depth Examination Of 15 Analyst Recommendations For General Motors

Author: Benzinga Insights | June 12, 2024 02:01pm

15 analysts have shared their evaluations of General Motors (NYSE:GM) during the recent three months, expressing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 7 2 1 0
Last 30D 1 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 3 4 1 1 0
3M Ago 1 3 1 0 0

Analysts have recently evaluated General Motors and provided 12-month price targets. The average target is $54.87, accompanied by a high estimate of $96.00 and a low estimate of $30.00. This upward trend is apparent, with the current average reflecting a 4.14% increase from the previous average price target of $52.69.

price target chart

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of General Motors's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
John Murphy B of A Securities Maintains Buy $75.00 $75.00
Dan Levy Barclays Raises Overweight $60.00 $55.00
Daniel Roeska Bernstein Announces Outperform $55.00 -
Tom Narayan RBC Capital Raises Outperform $58.00 $56.00
Itay Michaeli Citigroup Raises Buy $96.00 $95.00
Patrick Hummel UBS Raises Buy $58.00 $56.00
Colin Langan Wells Fargo Raises Underweight $30.00 $28.00
Alexander Potter Piper Sandler Raises Neutral $45.00 $44.00
Daniel Ives Wedbush Raises Outperform $55.00 $45.00
Vijay Rakesh Mizuho Raises Buy $52.00 $48.00
Adam Jonas Morgan Stanley Maintains Overweight $46.00 $46.00
Dan Levy Barclays Raises Overweight $55.00 $50.00
Adam Jonas Morgan Stanley Raises Overweight $46.00 $43.00
Vijay Rakesh Mizuho Raises Buy $48.00 $44.00
Alexander Potter Piper Sandler Announces Neutral $44.00 -

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to General Motors. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of General Motors compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for General Motors's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

For valuable insights into General Motors's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on General Motors analyst ratings.

Discovering General Motors: A Closer Look

General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under four segments: GM North America, GM International, Cruise, and GM Financial. The United States now has four brands instead of eight under old GM. The company regained its U.S. market share leader crown in 2022, after losing it to Toyota due to the chip shortage in 2021. 2023's share was 16.5%. GM's Cruise autonomous vehicle arm has previously done driverless geofenced AV robotaxi services in San Francisco and other cities but stopped in late 2023 after an accident. It should restart in at least one city in 2024. GM owns over 80% of Cruise. GM Financial became the company's captive finance arm in October 2010 via the purchase of AmeriCredit.

Unraveling the Financial Story of General Motors

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Positive Revenue Trend: Examining General Motors's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.58% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: General Motors's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.9% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): General Motors's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.54% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): General Motors's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.08%, the company showcases efficient use of assets and strong financial health.

Debt Management: General Motors's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.84, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: GM