According to the latest data compiled by Reuters, 46% of the 24 analysts covering General Motors (GM) gave it “buy” ratings. Another 46% of these analysts gave it “hold” ratings, and the remaining two analysts among the 24 covering the stock (or 8%) recommended a “sell.”
On December 26, 2017, the analyst consensus 12-month target price for GM stock was $46.70, reflecting an 11.7% upside potential from its market price of $41.80.
Analysts might be expecting this upside potential from the company’s stock due to continued positive growth in its profitability. Its stock also carries high expectations of returns from its investments in autonomous and electric vehicle development.
Analysts’ estimates for the 12-month return potential of General Motors’ peers (IYK) on December 26, 2017, are as follows:
- Ford Motor Company (F): Only 17% of analysts gave it a “hold” with no major upside potential.
- Fiat Chrysler Automobiles (FCAU): 43% of analysts have given it a “buy” with an expectation of an ~25% positive return potential in the next 12 months.
- Tesla (TSLA): 32% of analysts gave it a “buy” without any major upside potential.
In November 2017, most automakers reported an ~1.3% year-over-year increase in their US market sales. Please read US Auto Sales Kept Investor Hope Alive in November 2017 to learn more.