An analyst at Citigroup recently lowered his GM stock price target to $87 per share, down from $98 per share previously.
According to a recent report from Barron’s, Citi analyst Itay Michaeli lowered his GM stock price target following a vehicle density survey conducted for roughly 12 years. In the survey, Michaeli attempted to forecast the growth of car ownership per household in the U.S., and thus predict future vehicle demand. In the survey, Michaeli said that two prominent trends emerged, including a negative macro impact for certain age groups and regions, and an offsetting force from de-urbanization.
Nevertheless, Michaeli is still bullish on GM stock, and currently rates it as a Buy. By contrast, Michaeli rates Ford shares as a Hold, opening a 90-day catalyst watch on the Blue Oval’s stock.
Michaeli says that the results of the recent survey are more upbeat than one would be led to believe given the latest news surrounding the auto industry. Nevertheless, GM stock has performed poorly through the 2022 calendar year, dropping 34 percent. GM stock value is down 42 percent from the 52-week high of $67 per share recorded in January.
GM stock value set a new record earlier this year following a keynote speech delivered by GM CEO Mary Barra in conjunction with the 2022 Consumer Electronics Show (CES), during which Barra highlighted General Motors’ efforts in the fields of electric vehicle technology and autonomous vehicle technology. During the event, GM also unveiled the 2024 Chevy Silverado EV, an all-electric version of the automaker’s popular pickup truck offering upwards of 400 miles per range, available in both fleet and retail iterations.
However, GM stock value has fallen considerably since January, with investors reacting to the ongoing global microchip shortage, which has resulted in widespread production cuts and other supply chain issues. Nevertheless, some investors are now coming around, including Cathie Wood’s Arc invest Firm, which recently purchased shares after Wood criticized GM’s move towards EVs.