Citigroup Adjusts GM Price Target To $87 Per Share7
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.
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GM’s true value will not be clear until it’s 2023 EVs are reviewed, hit the road, and we see how popular electric Nox, Blazer and Lyriq are. All investors can go by now are the ICE line up, semiconductors and projected demand. No one can predict what Covid will do with China, how Ukraine will progress, or what the inflation rate will be. All we know are that GM trucks, large SUVs and credit should be fine. Ford keeps suprising analysts so predictions there should be taken with a grain of salt. My bet is a Rivian collapse and Ford majority state which would boost technology at the Blue Oval. Buying Ford stock on the cheap now is a smart move.
GM is a valuable company especially if it were broken up and sold/spun off in pieces to unlock value of Cruise and even Ultium with it’s JV and advanced EV technology that would certainly be of interest to a company like Magna or Sieman’s. Add to this GM brands’s, real estate, and Chinese investments.
Ford, unfortunately, doesn’t have as many components and the Model E & Blue Ovel separation is just silliness intended to break dealers and create a Tesla-like distribution model.
With gas prices headed north on a daily basis. It’s just a matter of time before truck and large SUV sales collapse. Trucks and large SUV’S are the real money makers for GM. If sales tank in the next 30 to 90 days. What does GM have to sell? They don’t have enough fuel efficient vehicles to sustain them. Until, GM EV’s get traction in the marketplace. Plus EV profits, if any, won’t replace truck and large SUV profits. If the economy implodes, which seems to be likely, at this point. GM Financial is going to suffer big time. Dealers have overpaid for used vehicles and you will see losses of $15,000 to $20,000 per unit. When dealers start bankrupting and GM Financial has to repo those units. Probably, 75 percent of the new auto loans put on the book’s everyday have negative equity involved. Those repo’s will see huge losses as well. GM owes a lot of chips to a lot of customers for vehicles they built and shipped with options not working. Such as heated steering wheels, front and rear park assist, and heated seats. How will that effect production over the next 6 months? Chips are supposed to be retrofitted beginning summer of 2022. That’s now. I haven’t heard of anyone getting a chip yet. To me, it sounds like Citigroup is dreaming. I would stay away from automotive stocks period. I wouldn’t even buy CarMax or Carvana. They’re all time bombs right now. Unless, you see gas prices heading down.
DUH! IF YOU WANT A CAR, WHERE DO YOU GO? GM????👎👎👎👎
If GM doesn’t get back to it’s core Values & Business principles, it’s stock will stay in the $30’s….
GM must start Killing Americans again. GM sat on it’s laurels Killing Americans for a decade. It’s time to get back to basics, and GM had better engineer something more sublime, deadlier than their Killer Ignitions.
I propose using their EV platforms to Electrocute Americans while driving; kinda like GM’S version of The Electric Chair 💺. But make it appear to be driver error of some sort.
GM Exec: idk why people aren’t buying our vehicles. We tried discontinuing fuel efficient vehicles, raising prices, cutting incentives, locking more options in expensive packages and adding lots of giant plastic pieces in our interiors.
GM stock was At $33 ipo in 2010. GM is now under $37 per share.
Why is anyone stupid enough to invest in GM.
Why are they still paying Mary Barra $20 plus million per year? She should be tar and feathered and run out of the country. Maybe to Mexico or China where she is shipping all GMs products