General Motors Shares Pop As Citi Sees Potential for Rally
General Motors (GM:US) shares trade higher on Thursday after Citigroup Inc (C:US) analysts said they see the potential for them to gain in the near term, on the back of the strong North American pricing.
As a result, Citi analysts opened a 30-day upside catalyst watch, an action typically performed when a Citi analyst expects shares to outperform the market in the near term. The analyst’s price target of $89 per share implies an upside potential of over 120%.
“If GM delivers another beat/raise with continued confidence in the 2025 trajectory, we think that an already stale “peak earnings” narrative could quickly lose momentum as GM’s resilience & growth become better appreciated—potentially leading to a rapid upward re-rating off the current ~5.8x consensus P/E,” Citi analyst wrote in a note to clients on Wednesday.
When it comes to the upcoming earnings report, Citi expects the Michigan-based carmaker to report better-than-expected Q2 figures. GM reports on July 25th.
“We also continue to see value unlock opportunity if GM were to disclose Truck & Non-Truck financials separately (not necessarily ICE and EV separately, just Truck and Non-Truck),” the analyst added.
Last week, GM announced it experienced an 18.8% jump in Q2 sales. The company delivered nearly 692,000 cars in the second quarter, including 15,652 EV units.
Congressmen Ro Khanna and Daniel Goldman were both trading the GM stock in recent months.
