An analyst at Bank of America’s investment banking division, BofA Securities, recently maintained a “buy” rating for General Motors stock (GM), setting a price target of $72.00, up from $70. GM was highlighted for its ability to navigate a challenging economic environment, as well as for making considerable strides in the EV segment. GM recently reported Q2 2023 sales figures, indicating a near 20-percent year-over-year sales increase.
GM stock opened at $39.54 per share in trading Friday morning. GM sales value has climbed over 18 percent this year.
This past Wednesday, GM reported sales results for Q2 of 2023, posting 691,978 new-vehicle sales between April and June, an increase of 18.8 percent compared to the 582,401 units sold in Q2 of 2022. The results for Q2 of 2023 also increased 88,770 units compared to the 603,208 units sold in Q1 of 2023. GM’s sales increase indicates strong demand for new vehicles as new-vehicle inventory improves following historically low levels during the COVID-19 pandemic and the resulting supply chain disruptions.
GM indicates that retail sales increased 15 percent for the first half of the 2023 calendar year, with fleet business increasing more than 30 percent.
Of the 691,978 new-vehicle sales recorded for Q2 of 2023, 15,652 units were new all-electric vehicles, netting GM the second spot in the U.S. market for all-electric vehicle sales. Tesla remained the biggest EV car maker in the U.S. by a considerable margin.
GM is expected to report Q2 2023 financial results later this month, with analysts forecasting favorable results.
The automaker has topped earnings estimates by an average of more than 30 percent in the last two quarters. The last reported quarter included earnings of $2.21 per share, and earnings of $2.12 per share for the quarter prior.
GM continues to pursue it goal of transitioning to an all-electric lineup across its light-duty offerings by 2035, with 30 new EVs launched globally by 2025. GM is investing billions into new EV technology development and production, as well as autonomous vehicle technology.