Why Most Analysts Recommend ‘Buy’ for GM Stock



Auto stocks’ ratings

Previously, we looked at analysts’ views on Tesla (TSLA). TSLA’s Model 3 production has been below expectations in the last three consecutive quarters. To learn about Tesla’s recent annual shareholder meeting, read Tesla Stock Registered the Highest Gains in 31 Months. Let’s now look at analysts’ recommendations for the largest US automaker, General Motors (GM).

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Analysts’ ratings for General Motors

In the last two months, many analysts have turned positive on GM stock. Of the 23 analysts covering the stock on June 6, 57% recommended “buy,” 39% recommended “hold,” and 4% recommended “sell.”

Based on 2017 US auto sales volumes, GM was the largest US automaker (FXD). GM’s 2017 US sales were much higher than those of Ford (F), Toyota (TM), and Fiat Chrysler (FCAU), which placed second, third, and fourth based on sales.

Analysts’ target price

On June 6, analysts’ 12-month target price for GM was $48.76, reflecting an 11% upside based on its market price of $43.93. In the first quarter, GM’s US sales rose 3.8% year-over-year. On May 31, GM revealed that Japanese investment company SoftBank, through its Vision Fund, would be investing $2.3 billion in GM’s AV (autonomous vehicle) subsidiary, GM Cruise.

While the company’s position in the AV space is strengthening at a fast pace, investors should keep an eye on its second-quarter US sales data, which GM is set to release in the first week of July. Continue to the next part to learn about analysts’ latest views on Fiat Chrysler stock.


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