General Motors: Robust Earnings, Confident 2026 Outlook, and Enhanced Shareholder Returns Support Buy Rating

Analyst Mark Delaney of Goldman Sachs maintained a Buy rating on General Motors, retaining the price target of $98.00.

Mark Delaney has given his Buy rating due to a combination of factors tied to General Motors’ recent performance and forward outlook. GM delivered fourth-quarter EBIT, EBIT margin, and adjusted EPS that exceeded both his estimates and broader market expectations, demonstrating resilient profitability despite year-over-year revenue declines. The company also produced solid automotive free cash flow in the quarter and laid out 2026 guidance for EBIT, EPS, and free cash flow that is modestly ahead of consensus, signaling management’s confidence in the earnings power of the business. In addition, GM’s decision to raise its dividend and expand its share repurchase authorization underscores a commitment to shareholder returns and suggests a strong underlying balance sheet and cash generation profile.

Delaney also appears to factor in supportive policy dynamics and structural drivers in his positive stance. While acknowledging that investors had largely anticipated guidance above consensus due to policy-related tailwinds, he still views the outlook as constructive, with targeted capital spending aimed at battery cell manufacturing and other strategic initiatives. He highlights that key variables such as tariff implementation, cost pressures (including components and warranty), market conditions, and longer-term technologies like autonomy will be important to monitor, but they do not overshadow the attractive fundamentals indicated in the guidance. Taken together, these elements support his view that GM’s valuation remains appealing relative to its earnings and cash flow prospects, justifying a Buy recommendation.

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

Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GM in relation to earlier this year.