Wedbush analysts have boosted their price target on General Motors Company (NYSE:GM) on renewed confidence in the automaker’s ability to sustain profitability amid a volatile tariff landscape.
They upped their price target to $75 from $65. Shares traded up 15% at $66 on Tuesday afternoon.
The firm’s revised view follows GM’s third quarter earnings beat, which showcased stronger-than-expected revenue, expanding margins, and a more optimistic full-year outlook.
Wedbush focused less on the numbers themselves and more on what it sees as a turning point in investor confidence in GM’s strategy under CEO Mary Barra, particularly the company’s balance of internal combustion engine (ICE) strength with a disciplined electric vehicle (EV) transition.
“GM continues to navigate the tariff storm with operational precision,” Wedbush analysts wrote, noting that the automaker’s ability to raise earnings and cash flow guidance despite a $1.1 billion gross tariff hit underscores the resilience of its business model.
Wedbush pointed to multiple drivers behind the firm’s higher price target. This includes GM’s success in offsetting tariff pressures through its US onshoring efforts, stable pricing, and growing software-based revenue streams.
The analysts highlighted the company’s software and services division, including Super Cruise and OnStar, which delivered roughly $2 billion in revenue for the quarter and holds a $5 billion deferred revenue pipeline, up 90% from a year earlier.
The firm also welcomed GM’s focus on cash flow and capital discipline, calling out the company’s decision to step up share repurchases heading into next year as “a clear signal of management confidence.”
Adjusted automotive free cash flow rose to $4.2 billion in the quarter, and GM raised its full-year guidance to $10 billion to $11 billion.
“The improved 2025 outlook reflects GM’s ability to manage through tariffs while keeping a tight lid on costs,” Wedbush wrote. “We see upside to both margins and valuation as execution remains consistent, particularly across the ICE portfolio.”
Wedbush expects GM’s diversified portfolio to remain a competitive advantage as the company navigates supply chain and tariff pressures.
The analysts view GM’s growing use of AI and robotics in manufacturing as a potential long-term catalyst for efficiency gains and margin expansion.
Wedbush characterized GM as a “compelling turnaround story” with improving visibility into 2025 profitability, even as the macro environment remains uncertain.
“Barra & Co are playing chess while others are playing checkers,” the analysts wrote. “GM’s ability to execute through this complex environment gives us increasing confidence that the company can deliver sustained earnings growth and shareholder returns over the next 12 to 18 months.”