General Motors (NYSE:GM) Stock Upgraded Amid Strong Profit Outlook and EV Progress

  • Jefferies upgraded General Motors (NYSE:GM) to Buy with a $99.00 price target, indicating a potential 19.8% upside from its previous trading price of $82.64.
  • General Motors raised its 2026 adjusted EBIT forecast to between $14 billion and $16 billion, and its adjusted EPS forecast to a range of $12 to $14.
  • The company's Q2 adjusted EPS grew 41% year-over-year to $3.57 on $48 billion in revenue, driven by strong North American demand and a 43% market share in full-size pickups and SUVs.

General Motors (NYSE:GM) is a global automaker known for its popular vehicle brands. An analyst at Jefferies recently upgraded their rating for General Motors from Hold to Buy. They set a new price target of $99.00. At the time, the stock was at $82.64, suggesting a potential upside of about 19.8%.

This positive view is shared by others. An analyst from Seeking Alpha maintains a Strong Buy rating with a $104 price target. They expect adjusted earnings per share (EPS) to reach $14.88 by 2027. Key growth drivers for General Motors include new truck launches, more SUV availability, and reduced losses from electric vehicles (EVs).

General Motors itself has raised its 2026 profit outlook for the second time this year. The company now expects adjusted earnings before interest and taxes (EBIT), a measure of a company's operating profit, to be between $14 billion and $16 billion. It also increased its adjusted EPS forecast to a range of $12 to $14.

The company's strong performance is already visible. In the second quarter, adjusted EPS grew about 41% year-over-year to $3.57 on revenue of $48 billion, as highlighted by The Motley Fool. Management notes that steady vehicle pricing and shrinking losses in its electric-vehicle business contributed to these positive results.

The North American business is a major factor in this success. As highlighted by Benzinga, adjusted EBIT in the region increased 42.7% to $3.45 billion. This was fueled by strong demand for full-size pickups and SUVs, where General Motors holds a significant 43% market share.

About the Author
Stuart Mooney

Market news and analyst rating coverage

Stuart Mooney covers market news and analyst activity for the FMP blog, including price-target revisions, upgrades and downgrades, and company developments. The focus is on clear, factual summaries of market-moving events grounded in financial data.

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