General Motors Growth Potential In Focus Amid EV Transition: Analyst Highlights Robust Liquidity, More Buybacks
Portfolio Pulse from Nabaparna Bhattacharya
BofA Securities analyst John Murphy reiterated a Buy rating on General Motors (GM) with a price target of $85, highlighting strong liquidity, potential for more buybacks, and robust Q3 earnings. GM's transition to EVs and improved EBIT outlook for 2025 are key focus areas.
October 23, 2024 | 4:59 pm
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BofA Securities analyst John Murphy reiterated a Buy rating on GM with a price target of $85. GM's Q3 adjusted EBIT was $4.115 billion, with a margin of 8.4%. The analyst sees potential EBIT growth in 2025, driven by EV business improvements and share buybacks, leading to possible EPS growth of 20%-30%. GM's liquidity is strong, supporting future investments and shareholder returns.
The analyst's reiteration of a Buy rating and increased price target to $85 is a positive signal for GM's stock. The strong Q3 earnings, potential EBIT growth from EV improvements, and robust liquidity position suggest a favorable outlook. The mention of share buybacks and EPS growth further supports a positive short-term impact on GM's stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100