Tudor Pickering has raised its General Motors stock price target from $75 to $95, with the Houston-based investor firm expressing increased confidence in the automaker’s electric and autonomous vehicle strategy.
According to Market Screener, Tudor Pickering believes the market will soon revalue GM stock based on the higher profit margins of its technology, such as its Ultium lithium-ion batteries and Ultium Drive electric motors. It is also encouraged by the automaker’s newly launched BrightDrop business, with the fleet market rapidly moving toward electrification and presenting new growth opportunities.
GM Cruise Origin autonomous shuttle
GM’s Cruise self-driving vehicle firm is another important aspect of the automaker’s current strategy, Tudor Pickering said. It says Cruise is “one of the most undervalued components,” and believes the market will grow to appreciate its ownership of the company over the next year. GM reported owning an 82.7 percent stake in Cruise as of the end of 2019. Cruise also counts Honda and Japan’s SoftBank among its backers and recently entered a tech partnership with Microsoft.
“We believe (General Motors) is well positioned to lean into the industry’s transition towards electrification at an attractive valuation while bolstering equity upside through technological innovation on both the connectivity and autonomy front,” said Tudor Pickering analyst Matt Portillo. “Our work suggests that GM’s shift in its business model over the last three years has positioned the company to outperform as management is charging ahead on electrification, while vertically integrating battery technology and taking a leading position in autonomy.”
GM BrightDrop EV410 electric van
In addition to its tech-related investments, Tudor Pickering also said GM’s current product portfolio and focus on profit margins inspire additional confidence in its stock performance.
“Further, the combination of legacy restructuring, a fleet refresh and new product offerings should help drive margin expansion as the auto market recovers while our forecasted acceleration,” Portillo added.
GM stock value stood at $58.28 at the time of publication, up 0.93 percent from market opening.
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Comments
ladies and gentlmen, may i present the great reset, you will own nothing and like it!
If you comply with contrived “energy crisis” and “climate emergency” rhetoric you get rewarded by the club of elitists..
The only Tudor I have ever heard of is the young brother of rolex
Tudor basically repeated GM’s rhetoric from the recent 2 day investor conference in Warren. The stock didn’t move significantly so these folks put out the story again in hopes that an increased price “target” would give the stock a bounce.
+1… Lot of announcements in a very challenging time for GM. Let s hope they’ll deliver and resole their issues, right now, lack of inventory and high prices are reality.
As you will see in the earnings report on the 27th, the lack of inventory and chips is not hurting GM too much, because there is still demand of the high end and profitable products.
GM stock moved up 20% in the last 6 weeks, and specifically 10% following the investor event.
GM stock was trading around $54 prior to the investor event. A 10% move would have put it around $59.40. It didn’t get there and has actually slipped back from the $58.96 close (on Oct 12) until on Friday (Oct 15) it closed at just under $58. The Tudor “report” was released last week to try to stem this slide (which occurred in an up trending market on Oct 14 – 15). At this point GM is actually down about 9% from its 2021 high of $63.92 close on June 8.
For months now I have expected GM to make $100 by Xmas. I suppose I will be disappointed