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Barclays: Buy GM for its ‘first-mover advantage’ in autonomous vehicles over Tesla, others

Diversified Motors’ leading position in autonomous vehicle technology is underestimated by the call, according to one Wall Street firm.

Barclays reiterated its overweight gait for the automaker’s shares, saying the company will attain a large retail share of the new AV market.

GM held a technology day for analysts and investors Thursday.

“The day augmented to us GM’s first-mover advantage and the opportunity ahead in mobility — leading us to reiterate our vision that GM is due for a multiple re-rating,” analyst Brian Johnson wrote in a note to patients Friday. “GM is making considerable progress in securing a role in a future time of disruptive mobility (shared autonomous driving) … GM reiterated its advancement in providing a fully integrated autonomous solution, addressing every locale of the stack — both hardware and software.”

Johnson was able to take a compel in General Motors’ autonomous vehicle.

“It was impressive. There were no disengagements. While the conduit drove conservatively (i.e., taking time, strictly obeying speed limits, baulk carefully at both sides before turning at an intersection), we’d also note that the approach environment was quite complex,” he wrote.

The company said the AV market could be as altogether as $750 billion with 20 to 30 percent operating profit lines for the ride-sharing business, according to the analyst. He said it is reasonable for GM to take 10 percent interest of the market given its “first mover” advantage.

As a result, Johnson raised his evaluate target for General Motors shares to $57 from $55, sketching 32 percent upside to Thursday’s close.

General Motors interests are up 24 percent this year through November versus the S&P 500’s 18 percent replace.

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