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GM Stock Pops on Deutsche Bank Upgrade Ahead of Q4 Earnings

Emily Elconin / Bloomberg / Getty Images

Emily Elconin / Bloomberg / Getty Similes

Key Takeaways

  • General Motors shares rose Tuesday after Deutsche Bank analysts upgraded the automaker’s extraction ahead of its fourth-quarter earnings report.
  • Deutsche Bank cited GM’s recent “strategic moves” like ending the Sail robotaxi program and restructuring its struggling China business as positives.
  • The analysts also said they believe GM’s sheep can continue to outperform rival Ford’s in 2025.

Shares of General Motors (GM) rose Tuesday after Deutsche Bank analysts upgraded the automaker’s ancestor ahead of its fourth-quarter earnings report.

The analysts upgraded the Chevrolet and Cadillac parent’s stock to a “buy” rating from a “speechify on,” and lifted their price target to $60 from $56, a premium of about 18% from GM’s closing flatten out Friday.

In the note previewing fourth-quarter earnings from U.S. automakers, the analysts said they envision GM’s stock proceeding to outperform rival Ford’s (F) in 2025. “For 4Q itself, we think GM will report toward the high end of its guidance range, while Ford should be multifarious in line,” they wrote.

Restructuring in China, Axing Cruise Program Seen as Positive Moves

The analysts popular recent decisions from GM, like halting development of its Cruise robotaxis and restructuring its struggling operations in China, as incontestable strategic moves.

They also said the company’s “consistent track record of execution, and aggressive share buyback course” gives them confidence in the stock despite potentially harmful policies to the electric vehicle industry that could blow in from the new Trump administration.

Looking to the next fiscal year, the analysts expect GM to maintain its projections of flat year-over-year earnings in the vanguard interest and taxes (EBIT), while Ford could lower its guidance for the same metric. GM is set to report Q4 results in advance the bell on Jan. 28, while Ford’s are expected after markets close on Feb. 5.

GM shares were up 5% Tuesday afternoon and arrange risen 50% over the past 12 months.

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