General Motors’ 3Q17 results
It’s important for investors to pay attention to Wall Street analysts’ recommendations, as they may affect the company’s stock price movement. In this part of the series, we’ll explore what analysts are recommending for GM after its 3Q17 earnings results.
Recommendations on GM stock
According to the latest data compiled by Reuters, 46% of analysts covering General Motors have given “buy” recommendations on the stock, while 50% of analysts have given it “hold” recommendations. The remaining 4%, or one analyst among a total of 24 covering the stock have recommended a “sell.” If popular Wall Street analysts change their views, a significant stock price movement could occur.
Consensus target price
As of October 24, GM’s consensus 12-month target price was $44.39, which was already lower than its market price of $46.48. With strengthening US sales of trucks and crossovers, GM’s market share in these two segments continued to be firm in 3Q17. Also, the company’s improving retail market share could be another reason why analysts are still maintaining a high price target on GM stock.
In contrast, any significant weakness in US auto sales could hurt GM’s future earnings forecast due to the company’s high dependence on a single market. A downturn in US auto sales is also likely to negatively affect other legacy auto giants (FXD) like Ford Motor Company (F), Fiat Chrysler (FCAU), and Toyota (TM).
Please visit Market Realist’s Autos page to stay updated on auto companies’ 3Q17 earnings highlights.