Back up the Corvette and shovel General Motors stock into the trunk, one top Wall Street auto analyst says in a new note to clients on Friday.
Citi’s Itay Michaeli came out with an $87 price target on General Motors. If you run the math, Michaeli is looking for about 187% upside in GM shares. By comparison, Michaeli — who has an under-perform rating on Tesla — expects shares of Elon Musk’s creation to tank 52%.
GM shares rose 2% on Friday.
Michaeli points to several catalysts for GM’s stock headed into 2023 following a meeting with the company’s executive team. They include:
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Strong auto demand continuing.
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September unveiling of an EV Equinox crossover.
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September investor event for GM’s autonomous driving unit Cruise.
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Production ramp for GM’s Ultium batteries, which should help bring down EV production costs.
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November investor day in New York City.
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Declining commodities costs.
“We were encouraged by management’s tone at our meeting,” Michaeli added.
The automaker also reinstated its dividend to 9 cents a share — it had been halted since the height of the COVID-19 pandemic in April 2020 — and lifted its share buyback plan to $5 billion from $3.3 billion.
“GM is investing more than $35 billion through 2025 to advance our growth plan, including rapidly expanding our electric vehicle portfolio and creating a domestic battery manufacturing infrastructure,” said GM CEO Mary Barra in a statement. “Progress on these key strategic initiatives has improved our visibility and strengthened confidence in our capacity to fund growth while also returning capital to shareholders.”
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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Source: finance.yahoo.com