GM: Confident Capital Returns and Manageable EV Headwinds Support Attractive Risk/Reward and Buy Rating

UBS analyst Joseph Spak maintained a Buy rating on General Motors today and set a price target of $97.00.

Joseph Spak has given his Buy rating due to a combination of factors that, in his view, validate GM’s ability to deliver solid financial results despite recent market concerns. He highlights that GM’s 2026 EBIT-adjusted guidance of $13–$15 billion and EPS of $11–$13 align with prior expectations and counteract the more cautious sentiment that had emerged around costs and EV-related cash outflows. Spak views this outlook as evidence that GM has multiple operational and financial levers it can pull to support earnings, including disciplined volume and pricing assumptions based on a roughly 16 million U.S. light-vehicle SAAR and modestly higher ICE wholesale volumes. He also notes that assumptions for flat to slightly positive pricing appear reasonable when set against GM’s recent performance, rather than overly aggressive.

In addition, Spak points to GM’s new $6 billion share repurchase authorization and a 20% increase in the quarterly dividend as strong signals of management’s confidence in future cash generation, helping to mitigate worries about the near-term drag from EV-related cash payments. He underscores expected improvements in EV losses and incremental regulatory benefits as further support to profitability, alongside anticipated reductions in warranty costs. While acknowledging headwinds from tariffs, commodity inflation, onshoring, and higher software spending, he judges these pressures as manageable within the broader earnings framework GM has outlined. Taken together, these elements lead Spak to conclude that the stock’s risk/reward profile is attractive, justifying his Buy recommendation on GM shares.

According to TipRanks, Spak is an analyst with an average return of -8.3% and a 46.77% success rate. Spak covers the Consumer Cyclical sector, focusing on stocks such as Tesla, Dana Incorporated, and American Axle.

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