General Motors: Resilient North American Margins, Robust Cash Generation, and Enhanced Shareholder Returns Support Buy Rating

Citi analyst Michael Ward maintained a Buy rating on General Motors today and set a price target of $98.00.

Michael Ward has given his Buy rating due to a combination of factors related to General Motors’ earnings power and cash generation outlook. He highlights that GM is demonstrating the ability to sustain a strong 8–10% EBIT margin in its North American auto business by 2026, even while facing tariff pressures and challenges in the battery electric vehicle segment. The company’s recent quarterly results exceeded both consensus and his own EPS expectations, with North American profitability remaining resilient as cost efficiencies and pricing gains helped offset weaker volumes and higher tariffs. Although GM recorded a substantial charge to resize its EV capacity in response to softer demand, Ward views this as a pragmatic step to align production with realistic market conditions.

Michael Ward also emphasizes the strength of GM’s forward guidance as a key driver of his Buy recommendation. Management’s projections for 2026 call for adjusted EBIT of $13–$15 billion, EPS of $11.00–$13.00, and free cash flow of $9–$11 billion, which he notes position his estimates at the higher end of these ranges. In addition, GM’s decision to raise its dividend by 20% and authorize a $6 billion share repurchase program signals confidence in future cash flows and a clear commitment to shareholder returns. Ward considers the higher-than-expected margin and free cash flow targets, along with the sizable buyback, to be positive surprises that support an attractive expected share price return of roughly 23%, reinforcing his Buy rating on the stock.

In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $98.00 price target.