UBS Raises General Motors Price Target to $114
UBS analyst Joseph Spak raised the price target on General Motors (NYSE: GM) to $114 (from $102) while maintaining a Buy rating.
“GM’s digital capabilities are an underappreciated and undervalued opportunity.
Digital creates a recurring, less cyclical, higher margin revenue stream that is deserving of a multiple higher than “core” GM.
Further, with a growing percentage of their fleet “connected”, GM taps into opportunities beyond initial hardware (i.e. vehicle) sale to capitalize on ongoing vehicle ownership and secondary customers.
We forecast GM’s total digital revenue to grow from $3.2bn in 2026E to $9.6bn by 2036E, a ~11.5% CAGR with the profit contribution growing from ~$2.7bn in 2026E (already ~18% of total EBIT) to $7.8bn in 2036E.
We created a proprietary, detailed GM Digital model; please reach out to your UBS representative for a copy. We raise our PT to $114 as we now assign a higher multiple to GM Digital vs. core GM.
We believe further Digital KPI disclosure or breakout of Digital revenue/profit could help with a re-rating.”
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