General Motors pops higher as Deutsche Bank says it’s a buy

“General Motors has consistently executed well in the midst of macro uncertainties, and we think this will continue to position the company well for 2025, amid a lingering EV slowdown, tariff concerns, and potential policy changes,” Deutsche Bank analyst Edison Yu said in upgrading GM stock to “buy” from “hold” and hiking his price target by $4 to $60.

Shares of GM are up more than 2.5% as of 11:10 a.m. ET, a jump that stands in stark contrast to the slump in electric-vehicle stocks.

What’s been encouraging, according to the analyst, is not necessarily what the company is doing right but rather its willingness to admit when things are wrong and pivot rather than throwing good money after bad. Cases in point: the firm taking restructuring and write-down charges on its joint venture in China, and shuttering Cruise, its robotaxi unit. These shifts should begin to provide some relief for the automaker’s bottom line this year, per Yu.

Now General Motors can focus on one of the things American companies do best: making money, and using that money to repurchase their own stock.

“The company will have completed its $6 billion repurchase plan (post the $10 billion accelerated share repurchase) by early 2025 and we expect continued aggressive buybacks beyond that,” Yu wrote.