CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We increase our 12-month price target by $2 to $34, based on a 2025 P/E of 4.9x, a steep but justified discount to historic averages. Our earnings estimates remain unchanged. GM posts Q4 U.S. vehicle sales of 625,176 units (+0.3% Y/Y), in line with expectations. Notably, despite the impact of the UAW’s targeted strike, dealership inventories of GM vehicles hit 456,686 units at year end, the highest level since 2020. GM’s Q4 EV sales totaled only 19,504 units and the company said it will offer up to $7,500 in incentives on its EV models that no longer qualify for the federal tax credit with new, more stringent requirements that went into effect on January 1, which we view as yet another EV-related red flag. With inventories rising at a rapid rate, we expect new vehicle prices to remain under pressure and incentives to continue increasing. Furthermore, sales volume comps will be more difficult in 2024, with U.S. new vehicle sales having increased by an estimated 14% last year. We maintain a Hold rating on GM.