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Over 70% of Analysts Call GM Stock a ‘Buy’

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Recommendations on GM stock

According to the latest data compiled by Thomson Reuters, 71% of analysts covering General Motors (GM) have given its stock “buy” recommendations, 24% have given it “hold” recommendations, and the remaining 5%—or one analyst out of 21—has given it a “sell” recommendation.

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Upside potential

On March 20, analysts’ consensus 12-month target price for GM stock was $47.14, which reflected a potential upside of 27.4% from its market price of $37.00. About six months ago, analysts’ consensus target price was lower at $44.55. Their current consensus target price on GM stock is even higher than its all-time high of $46.76, which it posted in October 2017.

Strong US sales (IVV) (IYK) of crossovers and pickup trucks have acted as an opportunity for auto companies to expand their profit margins. While GM’s fourth-quarter earnings fell, the company has beaten analysts’ earnings estimate for the last 15 quarters in a row.

Peer comparison

On March 20, only ~23% of Wall Street analysts had given Ford Motor Company (F) “buy” recommendations, and the stock had a potential upside of 9.0%. Analysts’ target price for Fiat Chrysler Automobiles (FCAU) reflected an impressive potential upside of 55.0%, but only ~22% of analysts had given it “buys.”

On March 20, analysts’ consensus target price for Japanese auto company Toyota Motor (TM) was $148.28, reflecting a potential upside of 23.9%. A total of 73% of analysts covering the company had given it “buy” recommendations.

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