American multinational investment bank Citi has raised its GM stock price target once again.
According to a report from Seeking Alpha, Citi’s future GM stock price target has been raised from $90 to $96, with analysts impressed by the automaker’s various EV and AV investments. Citi also raised its expected earnings-per-share (EPS) for GM stock from $6.76 to $7.01.
Citi auto analyst Itay Michaeli said GM could eventually be worth twice that amount, in part thanks to recent long-term investments like its Ultium battery plants and Factory Zero EV plant. He also believes the automaker’s upcoming CES unveilings, which will include a new Chevy Silverado EV and a new autonomous vehicle concept, could give the stock more momentum.
“GM remains our top pick, with a long-term upside case to ~$200/share,” Michaeli said. “Though the shares have underperformed since the recent departure of Cruise’s CEO, we still view GM’s upcoming CES EV unveilings as a likely positive catalyst for the stock.”
Citi also upped its stock price target for Ford this week, raising it from $20 to $23, but retaining its ‘neutral’ rating for it. While the investment bank sees upsides to both Ford and GM, it sees GM stock as being the stronger pick for the New Year.
“We continue to see greater relative upside at GM, but we maintain a constructive stance on Ford, as the long-term risk/reward proposition continues to improve,” Michaeli explained.
Despite Citi being more bullish on GM than Ford, the Dearborn-based automaker recently saw its market cap surpass GM’s for the first time since 2016, closing the December 28th trading day with a market cap of $83 billion to GM’s of $82.9 billion. Ford stock has been on a healthy run over the past 12 months or so thanks to increased investments in EV tech, strong market response to the Ford F-150 Lightning and its 12 percent stake in start-up automaker Rivian, which is worth roughly $12 billion thanks to Rivian’s hugely successful IPO last November.
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Comments
Citi Bank has proven to be nearly incompetent, so take their suggestions with a grain of salt.
Buy the gm dream, but no actual product!
That’s what people are doing, buying other products. Toyota (one of the least BEV invested companies) just outsold lowercase gm. The fist time in almost 100 years a foreign brand has held the top spot.
Bring production of small economical ICE cars back to the United States!
This is exactly as I predicted 5 months ago. I am without a doubt the smartest person to predict gm stock prices, I am always correct and I love telling people I’m always right.
I followed your advice and I’m bankrupt!
That’s unfortunate if you would of listened to what I said about apple you would of been a rich man they hit the $3 trillion dollar mark yesterday. No other company has ever been worth that.
I remember about 6 months before GM filed for bankruptcy there were “analysts” recommending GM as a buy.
Not with this leadership.
GM controls far more technology and is in a position to destroy Uber with Cruise. Autonomous taxis may be the future of GM surpassing vehicle sales as a profit driver.
Ford is a smaller, more nimble, better funded FCA and has a healthier image useing Bronco and Mustang as sub brands & leaving the Blue Opel line up for more conventional vehicles like trucks and Escape.
It’s clear that Ford is after ICE Jeep while GM ignores the segment even though it ownes GMC. Sure sub brand Hummer chases the high end luxury price point road warriors. AT4X isn’t enough of a product differentiator. Ford is using Mustang for the Dodge niche, Stellantis plans to take Dodge EV as well, but GM isn’t competing here either.