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Investing.com - UBS raised its price target on General Motors (NYSE:GM) to $85.00 from $81.00 while maintaining a Buy rating following the automaker’s third-quarter 2025 earnings report. The stock, currently trading near its 52-week high with a market capitalization of $63.4 billion, has shown strong momentum with a 30% return over the past six months. According to InvestingPro data, eight analysts have recently revised their earnings estimates upward.
The investment bank expects a positive 2026 earnings revision cycle to accelerate and ultimately exceed the approximately $11.70 EPS consensus that analysts had forecasted earlier this year before tariffs were implemented. With GM currently trading at an attractive P/E ratio of 10.7x and maintaining a GOOD Financial Health Score on InvestingPro, investors seeking deeper insights can access comprehensive Pro Research Reports covering 1,400+ top US stocks.
UBS has increased its 2026 EPS forecast for General Motors to $14.12 from $13.42, positioning its estimate 35% above the pre-earnings consensus.
The firm believes GM has multiple levers to drive North American margins toward the 8-10% range in 2026, including reduced electric vehicle losses, fixed cost initiatives, lower warranty expenses, tariff relief, and decreased regulatory requirements.
While UBS acknowledges that the exact path to approximately $14 EPS in 2026 is debatable, with some factors potentially performing better or worse than their specific forecasts, the bank found GM’s earnings call commentary strongly supportive of its positive outlook.
In other recent news, General Motors has reported stronger-than-expected earnings for the third quarter of 2025, surpassing analyst projections for both revenue and profit. This positive financial performance has prompted several analysts to adjust their outlook on the company. TD Cowen has increased its price target for General Motors from $92 to $100, maintaining a Buy rating on the stock. Similarly, Wedbush has raised its price target from $65 to $75, while continuing to rate the stock as Outperform. These updates reflect the analysts’ confidence in General Motors’ recent financial achievements. The company’s earnings call, led by key executives, provided further insights into the strong quarterly results. These developments highlight the ongoing interest and positive sentiment from the investment community towards General Motors.
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