CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target by $4 to $38, based on a ’25 P/E of 4.5x, a steep but justified discount to historical averages. We increase our adjusted EPS estimates to $8.90 from $6.40 for ’24 and to $8.50 from $6.90 for ’25. GM posts Q4 adjusted EPS of $1.24 vs. $2.12 (-42%), 10 cents ahead of consensus. The beat was driven by a stronger-than-expected top line, as revenue fell 0.3% to $43.0B ($3.5B above consensus) on 3.3% higher sales volumes. GM introduced 2024 adjusted EPS guidance of $8.50-$9.50 (current consensus = $7.76), implying Y/Y growth of 17% at the midpoint versus the $7.68 earned in 2023. The guidance largely reflects an anticipated $1.45/sh. positive impact from the previously announced share repurchase plan, but was a positive surprise considering the expected impact of higher labor costs in light of the new UAW deal. With GM shares having rallied 33% since the UAW deal was announced and significant uncertainty remaining in terms of its EV strategy, we raise our target, but remain at a Hold.