Deutsche Bank Upgrades General Motors to Buy, $90 PT

Deutsche Bank analyst Edison Yu upgraded General Motors (NYSE: GM) from Hold to Buy with a price target of $90.00 (from $83.00).

“Following the recent pull-back in the stock, we upgrade GM from Hold to Buy, viewing this as an attractive entry point to gain exposure to a potential multi-year re-rate story.

Undoubtedly, the near-term volatility can be attributed to geopolitical developments, but our thesis is built on GM’s operational resilience which it has demonstrated multiple times in recent years.

While the 2026 outlook is naturally less stable than a few months ago, we continue to believe many of GM’s profit drivers are within the company’s control.

We think vehicle mix can drive further gains, boosted by the changeover to next-gen truck platform in 2027 and lower EV losses post asset write-downs.

Lastly, the software+services stream appears to be gaining momentum and while this isn’t a meaningful part of the P/L currently, we think its growth trajectory can only help the multiple.

We raise our price target from $83 to $90, now using 3.25x 2026E Auto EBITDAP (vs. 3.0x prior) + 6x GM Financial earnings + adding back China equity income at 6x.

Although recent macro instability has triggered worries regarding the health of the auto market, our channel checks indicate no change thus far in consumer behavior or significant volume declines.

This is especially true for the first quarter. Looking specifically at GM’s 1Q, we expect some deterioration in volume/mix relative to the prior year though pricing should help to mitigate.”

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