General Motors stock rating reiterated at Buy by TD Cowen

TD Cowen has reiterated its Buy rating on General Motors (NYSE:GM) stock, which according to InvestingPro data is currently trading below its Fair Value. The firm’s decision comes alongside raised U.S. SAAR (Seasonally Adjusted Annual Rate) estimates for 2025-27, with expectations of low-single-digit industry revenue growth during this period. GM has demonstrated solid performance with revenue growth of 7.76% over the last twelve months to $188.45 billion.

The research firm named GM its "top pick" among automakers, citing the company’s strong exposure to potentially positive U.S. auto demand outcomes. TD Cowen’s analysis indicates above-consensus estimates despite acknowledging elevated macroeconomic risks. InvestingPro data reveals several positive indicators, including management’s aggressive share buybacks and a strong free cash flow yield. Subscribers can access 6 additional exclusive ProTips and comprehensive analysis in the Pro Research Report.

Several potential catalysts for GM were highlighted in the research note, including the resumption of share buybacks, further upward estimate revisions, net electric vehicle share accretion, and possibly improving sentiment around autonomous vehicles and software.

The firm also expressed a positive outlook for supplier stocks, naming Aptiv (NYSE:APTV) as its top supplier pick. The analysis suggests favorable conditions for both automakers and suppliers in the coming years.

TD Cowen noted that GM’s current price-to-earnings ratio of approximately 5x reflects "Peak Auto sentiments" that the firm’s latest research disputes, suggesting the stock may be undervalued based on their outlook.

In other recent news, General Motors (GM) announced plans to invest approximately $4 billion over the next two years to boost vehicle production at its U.S. manufacturing plants. This investment will enable GM to assemble more than two million vehicles annually in the U.S., focusing on both gas and electric vehicles. The company also recently committed $888 million to its Tonawanda, New York facility for next-generation V-8 engine production. In a separate development, GM Defense has partnered with NP Aerospace to bid for the UK Ministry of Defence’s Light Mobility Vehicle contract, aiming to modernize the British Army’s vehicle fleet.

Additionally, GM has unveiled the 2026 Cadillac OPTIQ-V, a new model in its V-Series lineup, featuring a sporty design and performance-driven power. This vehicle will be the first from GM to include a North American Charging Standard (NACS) inlet, emphasizing the company’s shift towards unified electric vehicle charging standards. In leadership news, GM has appointed Mike Trevorrow as Senior Vice President of Global Manufacturing, a move expected to enhance the integration of advanced manufacturing technologies. UBS maintained a Neutral rating on GM stock, noting that the company’s capital expenditures could limit potential capital returns. These developments highlight GM’s strategic focus on expanding production capabilities and enhancing its product offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.