Citi Hikes GM’s PT to $61, Maintains Buy Rating

Citi analyst Michael Ward raised the price target on General Motors to $61.00 (from $59.00) while maintaining a Buy rating.

“GM has the most leverage to positive trade agreements of any stock in our coverage universe.

GM reported better than expected 2Q earnings, despite the adverse impact from higher tariffs along with the daily uncertainty to changes in the regulations.

Company guidance assumes the current level of tariffs will continue, but the company believes it can mitigate 30% of the impact going forward with capacity realignment, pricing and cost reduction.

Tuesday night, CNN reported that a trade agreement had been reached with Japan, which could open the door for US vehicle imports into Japan and the agreement could be an incentive for other countries to find a solution sooner.

Progress with USMCA or with South Korea are positive for GM and could result in an upward revision to assumptions.

We rate GM Buy and increased our price target to $61 up from $59 per share.”

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