General Motors investors could be in for a treat if one analyst’s viewpoint pans out as described. Christopher Susanin of Levin Capital Strategies told CNBC that GM shares are poised to double in as few as two years.
Today, GM stock hovers around $43 per share, but Susanin said $75 per share doesn’t seem unlikely. He broke down a few areas where GM could add billions of dollars in value to the company.
The first is the restructuring of GM Korea, which the analyst sees as adding $10 per share to the current figure. The move could add a “couple billion” to GM’s profit. Secondly is Cadillac. If the automaker’s luxury brand can carry out initiatives to boost sales and profits, Susanin believes it will add another $10 to the share price.
Finally, self-driving cars and other GM businesses may add another $10 to the share price. The other businesses include GM Financial, OnStar, Cruise Automation and others. The analyst also factored in major growth in Asian markets.
On the self-driving car front, SoftBank announced last week that it would invest billions into GM Cruise. The investment should help GM commercialize self-driving car services next year.
Not everyone is as bullish on GM stock, however. Jamie Albertine, managing partner and automotive analyst at Consumer Edge Research, said investors have known about many of GM’s future plans and business models for some time and it hasn’t shifted the market quite yet.
“To see it double in two years, we think it’s low probability,” he said. “It’ll take more like five to seven years for this to play out, in our view.”