Shares of General Motors Co. gained more than 2% Monday after analysts at Mizuho upgraded the stock to buy from neutral and said the carmaker has several catalysts for a move higher now that the United Auto Workers strike is over. GM’s
GM,
+2.46%
estimated costs of wage increases of about $1.5 billion in 2024 will be fully offset by planned cost cuts totaling about $2 billion, the Mizuho analysts said. Moreover, the company’s “refreshed” electric-vehicle strategy is focused on profitability, and the company is pausing investments in its money-losing Cruise self-driving business, they said.
In the next year, GM is likely to show investors improved production without the interruption caused by strikes, and the company’s $10 billion share buyback will cover about 10% of shares outstanding over 12 months. The company’s key to success is a “strong, broad portfolio with SUV/Pickup focus,” the analysts said. “We have noted earlier that GM offers the broadest portfolio in North America, with a full range of SUVs, pickups, commercial vehicles, vans and EVs with a key focus on the higher-growth SUV and Pickup truck market in [North America],” they said. The analysts also raised their stock-price target to $42 from $38, which represents upside of about 27% over Monday prices. …
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GM,
+2.46%
estimated costs of wage increases of about $1.5 billion in 2024 will be fully offset by planned cost cuts totaling about $2 billion, the Mizuho analysts said. Moreover, the company’s “refreshed” electric-vehicle strategy is focused on profitability, and the company is pausing investments in its money-losing Cruise self-driving business, they said.
In the next year, GM is likely to show investors improved production without the interruption caused by strikes, and the company’s $10 billion share buyback will cover about 10% of shares outstanding over 12 months. The company’s key to success is a “strong, broad portfolio with SUV/Pickup focus,” the analysts said. “We have noted earlier that GM offers the broadest portfolio in North America, with a full range of SUVs, pickups, commercial vehicles, vans and EVs with a key focus on the higher-growth SUV and Pickup truck market in [North America],” they said. The analysts also raised their stock-price target to $42 from $38, which represents upside of about 27% over Monday prices. …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]