General Motors Investors Welcome $10B Buyback, But Goldman Sachs Says Automaker Must Show EV Progress
Portfolio Pulse from Neil Dennis
General Motors Co (NYSE:GM) announced a $10 billion share buyback program and a 33% dividend increase, alongside reissued full-year guidance with lower earnings expectations of $11.7-$12.7 billion, down from $12-$14 billion. The guidance adjustment is due to extra labor costs from a UAW settlement. Goldman Sachs raised GM's price target from $42 to $45 with a Buy rating, emphasizing the need for progress in EVs, software, and autonomy. Wedbush maintained an Outperform rating but lowered its target from $46 to $40.
November 30, 2023 | 6:24 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
GM's share buyback and dividend increase are positive for shareholders, but lowered earnings guidance may temper enthusiasm. Analysts' mixed views with Goldman Sachs raising the price target and Wedbush lowering it reflect uncertainty in the stock's direction.
The share buyback and dividend increase are typically seen as bullish signals, indicating the company's confidence in its financial position. However, the lowered earnings guidance due to labor costs could concern investors about future profitability. The mixed analyst ratings from Goldman Sachs and Wedbush suggest there is both optimism and caution in the market, leading to a neutral score.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100