American auto giant General Motors Co. demonstrated impressive financial results for the fourth quarter, which triggered a wave of optimism among leading analysts. Against the backdrop of consistently high profits, more than a dozen experts revised their forecasts for the company's stock value upwards, signaling to the market a significant potential for further capitalization growth. This was reported by Bloomberg, writes UNN.
Details
The company not only exceeded profit expectations but also presented an ambitious development plan for 2026. The strategy includes a share buyback of up to $6 billion and an increase in dividend payments, which immediately reflected in quotes: on Tuesday, GM shares soared by 8.7%. Overall, over the past year, the value of the Detroit giant's shares has grown by an impressive 70%, outperforming its closest competitors.
Our overall conclusion is that this forecast confirms our view that GM has many levers to drive earnings growth
He raised the target price of the stock to $102, joining institutions such as Citigroup and Barclays, which also improved their expectations. In particular, TD Cowen set the highest market benchmark at $122 per share.
Efficiency in uncertainty
GM's success looks particularly notable against the backdrop of general difficulties in the automotive industry related to changing regulatory norms and the threat of new tariffs. While Ford's shares grew by 37% over the year, and Tesla showed an increase of less than 9%, General Motors managed to demonstrate the best market reaction to financial reporting in the last decade. Wedbush analysts emphasize that the company "handled flawlessly" the difficult economic environment.
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Despite existing risks, such as trade negotiations between the US and South Korea or a shortage of certain components, experts from Morgan Stanley and Piper Sandler urge investors to continue holding GM assets. In their opinion, the company's potential for cash generation remains too great to ignore, making the automaker's shares one of the most attractive instruments in the stock market this year.
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