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.