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Investing.com - TD Cowen has reduced its price target on General Motors (NYSE:GM) to $80.00 from $83.00 while maintaining a Buy rating on the stock. The automaker, currently trading at a P/E ratio of 7.4 with a market capitalization of $50.3 billion, maintains a "GOOD" financial health score according to InvestingPro analysis.
The research firm described GM’s recent quarterly results as "noisier than expected," which contributed to a share price pullback. Despite the reduction, TD Cowen considers GM a "Top Pick" and believes Tuesday’s market reaction was "overdone."
The analyst firm cited two main reasons for viewing the pullback as excessive: market concerns about GM meeting the midpoint of its 2025 guidance appear unwarranted, and most of the "noise" factors in the quarter are unlikely to persist as major overhangs.
TD Cowen is trimming its 2025 estimates to account for second-half volume outlook and incremental costs, with its 2025 EBIT-adjusted forecast moving closer to the midpoint of guidance.
The firm maintains that General Motors’ long-term earnings trajectory remains "largely intact" despite the modest reduction in the price target based on updated 2025 estimates. For deeper insights into GM’s valuation and future prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, General Motors reported its second-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share of $2.53, beating the forecasted $2.35, and generated $47.1 billion in revenue, exceeding the expected $45.81 billion. Despite these positive results, General Motors faced challenges, including over $1 billion in tariff-related headwinds and elevated warranty expenses, which impacted its EBIT, reported at $2.1 billion, below the anticipated $2.4 billion.
Analysts have responded to these developments with varying assessments. Benchmark maintained its Buy rating on General Motors, setting a price target of $65.00. Citi also kept a Buy rating, raising its price target to $61.00, citing the automaker’s leverage to positive trade agreements and potential mitigation strategies. Meanwhile, BofA Securities lowered its price target to $62.00, noting the impact of tariffs despite a "respectable quarter." General Motors remains focused on mitigating tariff impacts through capacity realignment, pricing adjustments, and cost reduction measures.
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