Shares of GM are down Wednesday, having given back most of Tuesday morning's gain on a first-quarter expectations beat.
The stock fell 1.4% to $32.45, but analysts at Wedbush are unfazed. The firm reiterated its Outperform rating and price target of $46 for the stock in a note Wednesday.
GM reported first-quarter results that saw revenue rise 11% year-on-year to $39.99 billion, handily beating Wall Street’s estimate of $38.54 billion due to strong customer demand for its cars. The automaker also upped its full-year earnings guidance to between $11 billion and $13 billion, or $6.35-$7.35 per share.
“GM delivered solid March results out of the gates for 2023 with a strong outlook for the rest of the year with a raised guidance bar music to the ears of investors,” analysts said. “With Barra & Co. in the midst of a massive EV transformation this was a key quarter and outlook for the Street as it appears the profit margins and growth targets for the rest of the year are humming in a shaky macro.”
Wedbush also pointed to GM’s plan to achieve $2 billion in cost savings by the end of 2024, which has included a highly utilized buyout program.
“Importantly the $2 billion of cost savings (by the end of 2024) is ahead of plan and the EV production/ model lineup looks on target with a robust 2H23 on the docket,” the analysts noted.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel