Investment banking and brokerage firm Tigress Financial Partners has rated GM stock as a strong buy following the release of GM’s Q2 2023 earnings report. GM’s all-electric technology and production efforts were highlighted as some of the company’s biggest competitive advantages. The firm gave GM stock a price target of $86.
In a report released Friday, Tigress Financial Partners states that GM “continues a path of solid execution,” driving revenue and cash flow while funding a company-wide transition to all-electric powertrains, including in both EV technology development and EV production. GM aims to fully transition its light-duty vehicle lineup to all-electric powertrains by the 2035 calendar year.
Tigress Financial Partners also highlighted GM’s adaptable and modular Ultium platform, as well as its EV battery production capabilities, as “significant competitive advantage.” The GM Ultium platform includes GM Ultium battery technology and GM Ultium drive motor technology, both of which can serve as powertrain components for any number of all-electric vehicles, including passenger vehicles, trucks, and more.
Meanwhile, GM is now operating a new battery production facility in Ohio under the Ultium Cells joint venture between GM and LG Energy Solution, while a second facility in Spring Hill, Tennessee is expected to open later this year, and a third in Lansing, Michigan is expected to open in 2024. GM is also planning a fourth major battery plant in Indiana via a new joint venture with Samsung SDI.
GM released its Q2 2023 earnings report earlier this week, highlighted by $44.7 billion in revenue, $2.6 billion in net income attributable to stockholders, and EBIT-adjusted of $3.2 billion. The automaker also raised its full-year profit guidance, outlining plans to trim an additional $1 billion in costs, and updated its full-year guidance, forecasting $9.3 billion to $10.7 billion in full-year net income, up from $8.4 billion to $9.9 billion forecast prior.
GM stock value closed at $38.05 per share on Friday, falling 1.30 percent ($0.50 per share) compared to the previous week’s closing value of $38.55 per share.