General Motors' Turnaround On Track Despite EV Roadblocks – Analysts Say

General Motors Company GM shares are trading relatively flat on Wednesday.

Yesterday, the automotive behemoth reported adjusted earnings per share of $1.92 in the fourth quarter, beating the street view of $1.86. Quarterly sales of $47.70 billion (+11%) outpaced the analyst consensus estimate of $43.606 billion.

Here are the analysts’ take on the stock:

• BofA Securities analyst John Murphy reiterated the Buy rating on the stock, with a price forecast of $85.
• Wedbush analyst Daniel Ives reiterated the Outperform rating on the stock, with a price forecast of $60.

BofA Securities: Murphy points out that the company’s fourth quarter results were affected by a weaker mix in GM North America due to higher EV volumes and lost production of higher-margin full-size SUVs at GM’s Arlington plant.

Additionally, warranty and policy issues hurt the margin, while concerns arise over price declines exceeding the expected -1% to -1.5%, a flat volume outlook for 2025, and the lack of a new buyback authorization, though one is expected soon.

The analyst has slightly lowered 2025 earnings estimates based on the fourth quarter results but left 2026 estimates mostly unchanged.

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Wedbush: Ives writes that the company is experiencing significant benefits from its investments and progress in the field.

This marks another positive step in General Motor’s ongoing turnaround, as management successfully navigates challenges in the EV market.

According to Ives, the company is balancing production and profitability to create sustainable growth in the coming years.

The analyst highlights that the company has strong momentum heading into 2025 despite uncertainty around EV tax credits.

Price Action: GM shares are trading lower by 0.43% to $49.82 at last check Wednesday.

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