Analyst Michael Ward of Citi maintained a Buy rating on General Motors (GM – Research Report), retaining the price target of $62.00.
Michael Ward has given his Buy rating due to a combination of factors that highlight General Motors’ improved financial health and shareholder value. Over the past 15 years, GM has successfully halved the breakeven level of its North American operations, significantly reducing cash flow risk. Additionally, profits from its financial services subsidiary are now being directed back to the parent company instead of being used for non-automotive financial services growth, which lowers the company’s risk profile.
Furthermore, GM’s commitment to returning value to shareholders is evident through its recent $6 billion share repurchase authorization, including a $2 billion accelerated share repurchase program. Since early 2022, GM has generated $31 billion in surplus cash and returned $25 billion to shareholders, reducing its share count by over 30%. These strategic financial maneuvers contribute to a positive outlook for GM, justifying the Buy rating with a price target of $62.
In another report released on April 25, J.P. Morgan also maintained a Buy rating on the stock with a $53.00 price target.