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Deutsche Bank Sees GM Upside Amid Volatility
14 Apr
Summary
- Deutsche Bank upgraded GM stock to buy, setting a $90 price target.
- Recent stock dip attributed to geopolitical concerns is seen as an entry point.
- Future gains expected from new truck models and improved EV loss reporting.
Deutsche Bank has upgraded General Motors stock, moving it from 'hold' to 'buy' and raising the price target to $90. This upgrade suggests a potential 17.1% increase from its closing price on Monday. The stock has seen a slight decline of over 2% since the beginning of the Iran war, driven by worries about increased shipping expenses and potential supply chain disruptions.
Analysts view this dip as a favorable opportunity to invest in General Motors, anticipating a significant re-rating of its stock value over the coming years. While near-term fluctuations are acknowledged, the core investment thesis rests on GM's demonstrated operational resilience.
Further optimism stems from upcoming product developments, such as the release of next-generation trucks in 2027, which are expected to drive growth. Additionally, accounting adjustments are projected to show reduced losses in electric vehicle operations. The growth in GM's software and services business, though currently a minor part of its financial statements, is also seen as a positive factor that could enhance its market multiple.
