GM stock prices hit their one-year low on October 30th, 2023, sinking to $26.79 during Monday trading, though their value has rebounded somewhat over the course of the week.
Now, investment bank Barclays says the recent historic fall in GM stock value represents a good opportunity to buy shares in The General, as reported by Bloomberg.
Monday’s share price is also significantly below the 12-month high of $43.63 GM stock registered on February 16th, 2023. At that point, investor sentiment was buoyed by GM’s – and the automotive market’s – accelerating rebound from the fallout of COVID-19 and the gradual resolution of supply chain problems.
Now, Barclays analyst David Levy gives GM stock a $37 price target, representing a 30-percent jump from its recent low. Levy also gave the stock the Barclays equivalent of a buy rating, alongside a similar rating for Ford, which he expects will see its stock value grow around 44 percent to $14 per share.
Levy says investors can expect the GM stock rebound because “the UAW strike has been the primary overhang the last few months,” but now GM and the union appear to have reached a likely agreement, with plants that were on strike recently now operational again. Levy adds that “full resolution will help the stocks.”
Levy points to several financial metrics to support his buy thesis to investors. These include the fact GM stock is trading at only a 4-times multiple of the automaker’s projected 2024 earnings, the smallest multiple in the 13 years since The General returned to being a publicly traded company. GM’s forward 12-month P/E ratio is 4.579 currently.
Additionally, the analyst expects “quite healthy” earnings per share (EPS) of $6 per share for GM, once again bolstering the argument investors should snap up the “historically cheap” stock.
Of course, a range of other macro factors, results of strategy, and international factors such as a strike at three GM Brazil plants will play into the value of GM stock. However, Barclays is confident for the moment that a window exists to buy shares in the automaker at an attractive price before a full post-Stand Up Strike recovery occurs.