General Motors Company (NYSE: GM) jumped about 4% in the stock market on Friday morning as Wedbush Securities gave the stock an ‘outperform’ rating. Shares of the company have recovered more than 200% from a pandemic-related low in March 2020.
Ives is confident of GM’s push in EVs
Wedbush’s market analyst Dan Ives now has a price target of $85 per share on General Motors that translates to a potential upside of roughly 50%. Earlier this week, GM purchased 8-acre property in Northeast Pasadena for $49.5 million. The automaker wants to relocate its west coast design division to Pasadena.
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Ives is particularly bullish on companies working on electric vehicles, including Tesla Inc. Wedbush’s expert is confident that GM’s recent efforts into expanding its footprint in the EV segment will drive significant growth for the company in the future.
According to MarketWatch, Ives said late on Thursday that General Motors has regained its spot in the league of top U.S. automakers, thanks to the competent leadership of CEO Mary Barra. GM now boasts a more than 17% share in the United States auto market.
General Motors to spend $35 billion on R&D
To accelerate its shift to electric vehicles and develop advanced battery technology, the U.S. car manufacturer has committed to spending a massive $35 billion on research and development by 2025. Ives said:
“The Detroit automaker no longer as a traditional auto company trading based on book value, but a broader disruptive technology play that can start to trade at multiples similar to the likes of Tesla and other pure-play electric vehicle companies as GM executes on its vision.”
On average, Wall Street analysts have a $73.73 per share price target on General Motors stock for the next twelve months or a 31.52% potential upside. Wedbush announcement comes more than a week after GM said its Q2 U.S. vehicle sales slightly missed estimates.
On a year-to-date basis, the $84.43 billion company that has a price to earnings ratio of 9.42 is now up close to 50% in the stock market.
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