Shares of General Motors Co. were driven higher in early Tuesday trading, after Deutsche Bank turned bullish on the automaker, citing the recent closing of its robotaxi business and its “aggressive” repurchase activity.
“While there are concerns about the cycle and potential policies of the new Trump administration, our view is that these risks are already very well-known,” analyst Edison Yu wrote in a note to clients, adding that there was room for “positive surprises.”
Read: How GM’s self-driving strategy is evolving as it gives up on Cruise business.
Yu raised his rating on the GM’s stock (GM) to buy from hold. He raised his price target to $60 from $56, with the new target implying a roughly 16% upside from current levels.
The stock climbed 1.6% in morning trading.
“With GM stock having outperformed Ford significantly last year, we could envision 2025 being directionally similar,” Yu wrote.
GM shares soared 48.3% in 2024. On Nov. 25, the stock approached a nearly three-year closing high of $60.20. December saw the stock pare some gains.
Meanwhile, Ford Motor Co.’s stock (F) dropped 18.8% in 2024. And the U.S.-listed shares of Netherlands-based Stellantis N.V. (STLA), the parent of Chrysler, Jeep and Dodge brands, tumbled 44% last year.
In comparison, electric-vehicle giant Tesla Inc.’s stock (TSLA) soared 62.5% in 2024.
Since GM bailed on its robotaxi business, the stock has lost 1.8% while Tesla shares have advanced 4.3%.
Regarding share-repurchase activity, GM said in its third-quarter earnings report that it had reduced the number of outstanding shares by 19% from a year ago through buybacks. The company said then that it expected to repurchase another 25 million shares during the fourth quarter.
Looking into 2025, Deutsche Bank’s Yu expects GM to maintain its outlook for earnings before interest and taxes to be flat, relative to 2024, while he sees Ford lowering its EBIT guidance given pricing headwinds.