Key insights
- Jefferies lowered its GM price target to $90 from $97, citing a potentially slow start to 2026, but maintained a Hold rating. They slightly reduced FY EBIT estimates. Deutsche Bank upgraded GM to Buy with a $90 target. GM closed a $1.4B senior notes offering and announced a recall. Overall, the news presents mixed signals with limited immediate impact on the broader US equity market.
Investing.com - Jefferies lowered its price target on General Motors Co. (NYSE:GM) to $90 from $97 while maintaining a Hold rating on the shares. The stock currently trades at $78.05, up 67% over the past year but down 3.8% year-to-date. According to InvestingPro analysis, GM appears overvalued at current levels.
The firm expects a slow start to 2026 for the automaker but made only modest revisions to full-year earnings estimates, noting how conservative the initial fiscal year guidance appeared. Jefferies anticipates General Motors will maintain guidance in the upper part of its $13 billion to $15 billion range when it reports first-quarter results.
The firm reduced its fiscal year EBIT estimate by 3% to $14.3 billion, expecting the company to maintain the ability to balance cash returns and reinvestment. Notably, 8 analysts have revised their earnings upwards for the upcoming period, according to InvestingPro Tips—part of a comprehensive Pro Research Report available for GM and 1,400+ other US equities. Following write-downs, General Motors has maintained a more balanced exposure to electric vehicles and affordable models in addition to its exposure to the full-size U.S. market.
Jefferies projects first-quarter revenue of $41.7 billion, including North America revenue of $35.1 billion, down 6% year-over-year. The firm expects adjusted EBIT of $2.85 billion with a 6.8% margin, down 18% year-over-year.
The firm forecasts seasonally weak cash flow at negative $400 million for the first quarter.
In other recent news, General Motors reported several significant developments. The company closed a $1.4 billion senior notes offering with a 4.75% interest rate, intending to use the proceeds for general corporate purposes. Additionally, Deutsche Bank upgraded General Motors from Hold to Buy, raising the price target to $90, citing the company’s operational resilience despite recent geopolitical volatility. In a separate development, General Motors announced a recall of nearly 33,000 Corvette vehicles due to a software issue affecting turn signal light detection. The recall impacts certain 2025 and 2026 model year Corvettes, including various Coupe and Convertible models. Meanwhile, the U.S. National Highway Traffic Safety Administration is considering a permanent ban on Chinese air bag inflators following fatal incidents, although this does not directly involve General Motors. Wolfe Research also noted General Motors as having a favorable setup for the earnings season, highlighting potential positive performance. These updates reflect recent activities and assessments surrounding General Motors.
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