UBS analyst Joseph Spak maintained a Buy rating on General Motors today and set a price target of $97.00.
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Joseph Spak has given his Buy rating due to a combination of factors that highlight General Motors’ strong potential for growth and profitability. Spak anticipates that GM’s North American margins will return to the 8-10% range by 2026, with potential for even higher margins depending on macroeconomic conditions. This optimistic margin outlook is supported by UBS’s forecast of GM’s 2026 earnings per share being significantly above consensus estimates.
Additionally, Spak views the US auto market as particularly favorable for domestic truck producers like GM, especially given the relaxed regulatory environment. This environment allows GM to reduce compliance costs and optimize its vehicle mix, which is expected to benefit the company further in the coming years. Furthermore, GM’s valuation is considered reasonable, with strong cash generation and a commitment to returning excess cash to shareholders, potentially through share repurchases and dividend increases. Spak also notes potential upside from favorable trade negotiations and the possibility of interest rate cuts, which could enhance GM’s attractiveness to investors.
In another report released on December 9, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $85.00 price target.