Intel stock spikes after report of possible US government stake
On Thursday, Mizuho (NYSE:MFG) Securities adjusted its price target for General Motors (NYSE:GM) shares, lowering it to $53.00 from the previous $55.00 while reaffirming an Outperform rating. The revision comes in the wake of General Motors’ announcement that it expects a potential $5 billion impact from tariffs on its 2025 profit forecast. According to InvestingPro data, GM trades at an attractive P/E ratio of 6.4x, with analyst targets ranging from $34 to $105, suggesting significant potential upside despite current headwinds.
General Motors reported first-quarter 2025 revenue and earnings per share of $44.0 billion and $2.78, respectively, both figures surpassing the consensus estimates of $43.0 billion in revenue and $2.72 in earnings per share. The company saw global wholesale volumes of approximately 912,000 units, a 2% year-over-year increase, compared to a global industry volume growth of about 1%. InvestingPro analysis shows GM maintains a strong financial health score of 2.82 (rated as GOOD), with trailing twelve-month revenue reaching $188.45 billion and an impressive free cash flow yield of 30%.
Among the key points addressed by the automaker were a projected $3 billion net tariff headwind to its 2025 estimated EBIT and an anticipated decline in vehicle volumes for 2025 and 2026. This outlook suggests a more challenging environment for automotive suppliers such as Analog Devices (NASDAQ:ADI). Additionally, General Motors indicated it would not meet its target of 300,000 electric vehicles by 2025, which is seen as a negative development for Wolfspeed Inc. (NYSE:WOLF)
Despite these headwinds, General Motors reported a slight year-over-year increase in the average transaction price of its vehicles in the United States, which had previously been expected to decrease. The company’s focus for 2025 is on mitigating the impact of tariffs and maintaining strong profitability.
Following the release of this information, General Motors’ stock price saw an uptick. The market’s response reflects a clearer understanding of the tariff impacts and the company’s strategy to reduce uncertainty moving forward. Despite the significant potential impact to GM’s EBIT, the company’s shares have only seen a modest pullback since "Liberation Day," which the analyst noted was approximately 5.7%. InvestingPro subscribers can access eight additional exclusive insights about GM, including detailed analysis of management’s share buyback strategy and dividend history. Get the complete picture with the comprehensive Pro Research Report, available for GM and 1,400+ other top US stocks.
In other recent news, General Motors (GM) reported strong financial results for the first quarter of 2025, exceeding analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $2.78, surpassing the projected $2.61, and reported revenue of $44.02 billion, which also exceeded the anticipated $43.26 billion. GM’s U.S. market share increased to 17.2%, and electric vehicle (EV) sales grew by over 90% year-over-year. In terms of analyst activity, the earnings call did not specify any upgrades or downgrades, but the results reflect positively on GM’s performance. The company updated its 2025 EBIT adjusted guidance to a range of $10-12.5 billion and expects an EPS of $8.25-$10. Additionally, GM plans to continue investing in EV technology to improve profitability. Despite potential challenges from tariffs, GM remains optimistic about offsetting a significant portion of these costs. CEO Mary Barra emphasized the company’s resilience and strategic focus in adapting to new trade policies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.