UBS Reiterates Buy on General Motors, $102 PT

UBS analyst Joseph Spak reiterated a Buy rating and $102.00 price target on General Motors (NYSE: GM).

“When speaking to reporters President Trump said that GM has plants “which they’re going to switch over.

We’re going to build weapons, including the Patriot, including the Tomahawk…GM’s ultimate role with defense is still to be determined (or at least discovered/made known).

However, GM does have strong manufacturing capabilities and as we have been pointing out for a while now, the opportunity for auto companies to diversify a bit and find new non-auto revenue/earnings streams is intriguing.

Given the importance of buybacks to the GM story, this may bring up some investor questions as to whether GM (via GM Defense) could be subject to Sec.

815 of the 2027 National Defense Authorization Act (NDAA) which would prohibit (if passed) the Pentagon from issuing contracts to defense firms unless the contractor agrees in writing to halt stock buybacks and dividends, or obtains a waiver from the Defense Secretary.

Our initial view is that GM would not be subject to this since they are primarily an automaker (we do note that GM Defense already sells vehicles to the government) but the language is admittedly fairly indiscriminate.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.