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Investing.com - CFRA raised its price target on General Motors (NYSE:GM) stock to $64.00 from $58.00 while maintaining a Buy rating, citing the automaker’s market share gains and electric vehicle sales growth. The automotive giant, with a market capitalization of $50 billion, currently trades at an attractive P/E ratio of 7.3x, significantly below industry averages. According to InvestingPro data, management has been actively buying back shares, demonstrating confidence in the company’s future.
GM reported second-quarter U.S. vehicle sales of 746,588 units, representing a 7.3% year-over-year increase. This performance aligned with Cox Automotive’s estimates for GM but significantly outpaced the projected 1.7% growth for overall U.S. new vehicle sales in the quarter.
The automaker’s U.S. electric vehicle sales surged 111% year-over-year to 46,280 units. The Chevy Equinox EV emerged as GM’s best-selling electric model, with 17,420 units sold in the second quarter.
CFRA increased its 2025 adjusted earnings per share estimate for GM to $9.65 from $9.50 while maintaining its 2026 estimate at $10.60. The firm’s new price target is based on a 2026 price-to-earnings ratio of 6.0x, which represents a discount to GM’s five-year average forward P/E of 6.8x.
The research firm noted GM’s "stellar" earnings track record with eleven consecutive quarterly earnings beats and suggested that concerns about tariffs are "mostly in the rear view."
In other recent news, General Motors reported a 7% increase in U.S. sales for the second quarter, with total sales reaching 746,588 units. The company also noted a 12% sales increase for the first half of 2025, surpassing the estimated 4% growth for the entire auto industry. Chevrolet recorded its best first-half sales since 2019, and GM’s electric vehicle sales grew more than 100% in the second quarter. Meanwhile, General Motors is recalling 40,233 Chevrolet Blazer EVs due to a parking brake wiring harness defect and an additional 62,468 vehicles due to a brake pressure sensor assembly fault. TD Cowen reiterated its Buy rating on General Motors stock, citing strong exposure to positive U.S. auto demand and naming GM as its "top pick" among automakers. Additionally, GM Defense has partnered with NP Aerospace to pursue the UK Ministry of Defence’s Light Mobility Vehicle contract. This collaboration aims to replace aging military vehicles with a new Common Based Platform. The partnership will also explore opportunities with NATO and the Canadian Armed Forces.
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