General Motors Company (NYSE:GM) impresses with robust earnings and a brighter outlook, driving analyst confidence and higher price targets. The company reported its third-quarter revenues and profits ahead of expectations and updated its full-year outlook, according to Goldman Sachs.
The General Motors Analyst: Analyst Mark Delaney reiterated a Buy rating and price target of $74.
The General Motors Thesis: The company reported total revenues and non-GAAP earnings of $48.6 billion and $2.80 per share, higher than Street expectations of $45.0 billion and $2.29 per share, respectively, Delaney said in a note.
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General Motors mentioned that the year-on-year decline in its EBIT was mainly driven by tariff costs, warranty, and volumes, he added.
Management updated their 2025 adjusted EBIT guidance to $12-$13 billion, from their prior projection of $10-$12.5 billion, while lowering the gross tariff expectation to $3.5-$4.5 billion, from their prior estimate of $4-$5 billion, the analyst stated.
"GM expects 2026 to be stronger than 2025 per the slide deck, with potential progress on EV losses, warranty costs, regulation rules, and fixed costs," he further wrote.
GM Price Action: General Motors shares were up 15.66% at $67.08 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
General Motors, with a market cap of $63.87 billion, is positioned within the consumer discretionary sector, where its P/E ratio of 8.85 indicates a relatively low valuation compared to industry peers, potentially reflecting investor caution amid a transitional phase toward electric vehicles.
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