BofA Keeps GM Buy Rating, Cuts PT to $62

BofA Securities analyst John Murphy lowered the price target on General Motors to $62 (from $65) while maintaining a Buy rating.

“Although no mitigating offsets on tariffs were realized in 2Q, GM was able to deliver a respectable quarter.

The math suggests that at run-rate full mitigating actions may be 30%+ of the tariff impact, which give us confidence that over time this will be further reduced.

This appears to be already in motion with GM’s initiatives to increase production in the US.

Although we don’t love the potentially higher capex, we acknowledge that competitors are in the same boat, which on a relative basis makes the impact more digestible.

Regardless, GM is on track to print adj. FCF of $7.5bn-$10bn in ‘25, which gives optionality in terms of capital return to shareholders and investments in the business.

Post ests. change our PO moves from $65 to $62 on 3x EV/EBITDAP, reiterate Buy.”

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