GM Stock: Over 70% of Analysts Say ‘Buy’ before Q1 2019 Earnings



General Motors’ Q1 2019 event

The largest US automaker, General Motors (GM), is slated to release its first-quarter report on April 30 before the market opens. Weakness in the company’s first-quarter vehicle sales, especially in the US and Chinese markets, should affect its earnings. Other than earnings estimates, investors should also be aware of Wall Street analysts’ ratings as they may have an impact on the company’s stock price action.

Now, let’s explore what analysts recommend for GM before its first-quarter earnings event.

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Over 70% of analysts say “buy”

According to the latest data compiled by Reuters, nearly 71% of analysts covering GM stock recommend a “buy” while another 24% say to hold the stock. The remaining 5% of Wall Street analysts expect GM stock to fall and recommend a “sell.”

As of April 24, analysts’ 12-month consensus target price for GM stock was $47.21, which was about 18.9% higher than its market price of $39.72. About three months ago, analysts’ consensus target for the company was slightly lower, near $45.50.

Over the last three years, GM has actively invested in autonomous and electric vehicle development to stay ahead of competition. GM’s efforts to protect its profitability by focusing on retail sales, a plan to strengthen its pickup truck lineup, and a focus on electric cars and autonomous vehicles could be keeping analysts’ optimism alive.

Ratings for competitors

As of April 24, analysts’ ratings for General Motors’ peers (IYK), with their 12-month return potential, were as follows.

  • Ford (F): only 23% of analysts say “buy” without any upside potential, as the target price was already slightly above the market price
  • Fiat Chrysler (FCAU): 22% of analysts say “buy,” and their consensus target price for the stock reflects 45.6% upside potential
  • Toyota (TM): about 73% of analysts covering the company say “buy,” with 20.5% upside potential

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