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Investing.com - CLSA initiated coverage on General Motors (NYSE:GM) stock with an Outperform rating and a $68 price target, citing the automaker’s strategic approach to recent trade policies. The target sits well within the current analyst range of $34-$83, with InvestingPro data showing GM trading at an attractive P/E ratio of 7.5x while maintaining a GOOD financial health score.
According to CLSA analyst Christopher Richter, GM management is positioning itself to benefit from the current auto tariff environment by deliberately holding back on price increases that would offset import duties.
This pricing strategy is putting pressure on GM’s competitors, particularly overseas-based automakers who are reluctant to draw criticism from the administration, CLSA notes in its research.
The firm highlighted GM’s planned $4 billion investment to relocate some production back to the United States as another strategic move in response to the current trade situation.
CLSA also pointed to the possibility that the tariffs could become permanent, which factors into its bullish outlook on the Detroit-based automaker.
In other recent news, General Motors reported a 7% increase in U.S. sales for the second quarter, totaling 746,588 units. The company’s electric vehicle sales surged by over 100% in the same period, with the Chevy Equinox EV leading as the best-selling model. CFRA raised its price target for General Motors to $64, citing strong electric vehicle sales and market share gains, while maintaining a Buy rating. The firm also adjusted its 2025 earnings per share estimate to $9.65.
General Motors is also recalling 40,233 Chevrolet Blazer EVs due to potential issues with the parking brake wiring harness, which could pose safety risks. Additionally, another recall involves over 62,000 vehicles due to a brake pressure sensor assembly fault that might lead to fluid leaks and electrical shorts. TD Cowen reiterated its Buy rating for General Motors, highlighting the company’s strong market position and naming it their "top pick" among automakers. The firm expects positive outcomes from U.S. auto demand and sees several potential catalysts for the company, including share buybacks and increased electric vehicle market share.
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