☰
The brokerage raised GM’s price target to $48 from $45 while keeping a ‘Neutral’ rating, noting that the carmaker has established itself as the best Detroit-based automaker.
Piper Sandler analyst Alexander Potter raised his firm’s price target on General Motors (GM) on the heels of downgrading Rivian Automotive (RIVN) and cutting the price target on Ford Motor Co (F).
According to TheFly, Potter raised GM’s price target to $48 from $45 while keeping a ‘Neutral’ rating. The firm said in a note that the carmaker has established itself as the best Detroit-based automaker.
The analyst opined that its buybacks and a low multiple provide downside protection for the shares.
In January, GM said it expects adjusted diluted earnings per share (EPS) of $11-$12 in 2025, up from the $10.6 reported in 2024.
The company also guided adjusted earnings before interest and tax (EBIT) in the $13.7 billion to $15.7 billion range, in line with the $14.9 billion reported last year.
Pipe Sandler’s price target hike on GM followed a target cut for both Ford and Rivian.
The brokerage reduced its target on Ford to $9 from $13 while keeping a ‘Neutral’ rating. The company employs profitable business segments to subsidize failed electric vehicle launches. The analyst added that Ford’s plan to address its challenges could take years.
In February, the automaker said it expects an overall full-year adjusted EBIT of $7 billion to $8 billion for 2025, lower than the adjusted EBIT of $10.2 billion reported for 2024.
It pinned the disappointing forecast on headwinds related to market factors. The company expects losses in the $5 billion to $5.5 billion range this year for its EV segment alone.
Piper Sandler also downgraded EV startup Rivian Automotive to ‘Neutral’ from ‘Overweight’ and cut its price target from $19 to $13. It said its shares have no upside catalysts this year and until the launch of its R2 vehicle in the first half of 2026.
Rivian is expecting lower EV deliveries this year, between 46,000 and 51,000 units, a decrease from the 51,579 deliveries reported in 2024.
It is looking to pause its production line at its factory in Illinois for about a month in the second half of the year to prepare for the start of production of its new vehicle.
On Stocktwits, retail sentiment about GM and Ford shares stayed in the ‘bullish’ territory, while the sentiment about Rivian trended in the ‘neutral’ territory.
While GM shares have risen by over 14% over the past 12 months, Rivian shares have risen by about 4%. Ford shares, however, dropped over 20% in the period.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here.