Morgan Stanley has adjusted its outlook on General Motors, upgrading the automaker’s stock from an “underweight” rating to “equal weight,” while also increasing its price target to $54 per share, up from the previous target of $46. The firm’s bull-case target has also been raised, now sitting at $80 per share, a reflection of improving fundamentals and strategic changes within General Motors. GM stock opened today at $53.77 per share, and currently sits at $52.74 per share, as of this writing.
In its analysis, Morgan Stanley pointed to lower losses from GM China operations and the Cruise autonomous vehicle division, as well as sustained strong profit margins on General Motors’ internal combustion engine (ICE) vehicle portfolio.
“There have been several material developments on GM since our September downgrade that have demonstrated improved execution and capital discipline,” the bank noted.
In September, Morgan Stanley downgraded GM stock from “equal weight” to “underweight,” resulting in a sharp stock price decline of roughly 5 percent. At the time, Morgan Stanley analysts, led by Adam Jonas, cited high vehicle inventories, falling prices, and possible signs of weakening consumer demand, as well as mounting competitive pressure from Chinese automakers.
However, recent moves on General Motors’ part contributed to the improved outlook, including a strong Q3 financial performance that exceeded expectations, as well as the company’s strategic sale of its stake in the third Ultium Cells plant to joint-venture partner LG Energy Solution.
On the international front, General Motors has been restructuring its business in China and is optimistic about a return to profitability in the region. Additionally, a forthcoming second term for president-elect Trump will likely favor ICE vehicles by extending their lifecycle through supportive policies, offering General Motors a strategic advantage amid turbulent EV market conditions.
Looking forward, the investment bank warned of challenges for the auto industry in 2025, including shifting U.S. policies, new tariffs, and ongoing volatility in electric vehicle (EV) and autonomous technology sectors.
Proposal includes 5-year ban on reporting location and driver behavior.
A striking look for the Vette.
A considerable decline since winter 2024.
View Comments
Look at that. Right after GM signals they are not advancing with EVs to the same degree, they get their rating increased.
Wall Street analysts are morons these days. What about looming tariffs? I'd severely underweight. And they intro another unwanted EV monthly. Ugh.
GM is in pretty good shape compared to most auto makers.
I think the better rating is due to the fact GM can do EV or ICE with no problem. They literally have duel lines.
As for tariffs. Don’t get too excited as Mexico and Canada will make deals. As for China look as mfgs already are starting yo source parts from other countries and here.
The Tariffs are to bring these countries to the table and negotiate better deals for America. It is all about the better deal.
There are better ways to bring people to the table than throw around the word tariff. Someone is going to ignore the bluff and we're all going to pay.
Oh man, Mary is doing so bad, she should put in her two weeks (right Rick?). GM is in much better shape than many automakers, especially the US ones. So she isn't doing some of the car guy money losing specialty vehicles, it is a business case and they don't make business sense. None of the others are doing "affordable" mid-engine supercar performance level vehicles.
If a $80,000 two seater that is either unaffordable or impractical for 98 percent of car buyers is the only thing that gm has going for it, they are in trouble.