General Motors stock holds Buy rating at Benchmark after Q3 earnings beat

Investing.com - Benchmark has reiterated a Buy rating and $65.00 price target on General Motors (NYSE:GM) following the automaker’s third-quarter 2025 earnings report. According to InvestingPro data, GM is currently trading near its 52-week high, with 8 analysts recently revising their earnings expectations upward.

GM reported earnings per share of $2.80 for the third quarter of 2025, exceeding Benchmark’s estimate of $2.40, though falling short of the $2.96 reported in the same period last year. The stock currently trades at a P/E ratio of 10.7x, with a market capitalization of $63 billion.

The company’s North America Auto operations generated EBIT income of $2.8 billion, slightly below the $2.9 billion from the year-earlier period but above Benchmark’s $2.4 billion estimate, while GM Financial reported pretax income of $4.3 billion, up from $4.0 billion a year ago.

Operating cash flow less capital expenditures reached $3.96 billion for the quarter, with year-to-date cash flow totaling $7.0 billion, and GM ended the quarter with $35.6 billion in automotive liquidity against $16.1 billion of automotive debt. For deeper insights into GM’s financial health and additional ProTips, check out the comprehensive research report available on InvestingPro.

The company’s North America Auto EBIT income specifically totaled $2.5 billion in the third quarter of 2025, down from $3.9 billion in the prior year, which Benchmark attributed to pressure from tariffs and cost headwinds.

In other recent news, General Motors has reported stronger-than-expected third-quarter earnings for 2025, surpassing analyst estimates in both revenue and profit metrics. This performance has prompted several financial institutions to adjust their price targets for the automaker. UBS raised its price target for General Motors to $85, citing a positive 2026 earnings outlook and an anticipated earnings revision cycle that could exceed earlier forecasts. TD Cowen also increased its price target to $100, attributing the decision to what it described as a "strong Q3 beat/raise." Similarly, Wedbush raised its target to $75, maintaining an Outperform rating based on the robust third-quarter results. These developments come as the company continues to navigate the challenges of the automotive industry, with analysts from these firms expressing optimism about General Motors’ future performance. The adjustments in price targets reflect confidence in the company’s ability to sustain its financial momentum. These recent developments highlight the market’s positive response to General Motors’ financial achievements.

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