General Motors Receives Strong Buy Rating from Mizuho Analyst Vijay Rakesh

Mizuho's Vijay Rakesh upgraded their rating on General Motors Co (NYSE: GM) from Hold to Strong Buy on December 4, 2023. The analyst also raised their price target by 10.5% from $38 to $42.

Rakesh's decision to upgrade the stock comes amidst a backdrop of challenges facing General Motors, including a weak consumer sentiment, a 25% hike in UAW wages, and difficulties encountered by Cruise and its electric vehicle segment. However, Rakesh believes that these factors are already accounted for in the stock's current 10-year valuation lows.

In their mid-quarter review, Rakesh outlined several upside catalysts for General Motors going forward. These include the end of the UAW strike, the resumption of production, and the presence of "idiosyncratic catalysts" unique to GM. These catalysts include fixed cost reductions, a refreshed EV ramp focused on profitability, and share buybacks.

Citigroup's Itay Michaeli also chimed in on General Motors on December 4, 2023, raising their price target by 5.6% from $90 to $95. Michaeli maintained their Strong Buy rating on the stock.

According to data from WallStreetZen, 85.7% of top-rated analysts currently rate GM as a Strong Buy or Buy, while 14.3% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Analysts' consensus forecast for General Motors predicts earnings per share (EPS) of $6.8 for the upcoming year. If these predictions hold true, GM's next yearly EPS will see a decrease of 4.9% on a year-over-year basis.

Since General Motors' last quarterly report on September 30, 2023, the stock price has increased by 0.3%. However, on a year-over-year basis, the stock is down 14.7%. During this period, GM has been trailing the S&P 500, which is down 14.3%.

Vijay Rakesh, the Mizuho analyst who upgraded GM's rating, is ranked in the top 1% out of 4,418 Wall Street analysts by WallStreetZen. Rakesh specializes in the Technology and Consumer Cyclical sectors and boasts an average return of 13.8% with a 54.5% win rate.

General Motors Company, founded in 1908, is an automaker headquartered in Detroit, MI. The company's core brands include Chevrolet, Buick, GMC, and Cadillac. GM also holds interests in Chinese brands Wuling Motors and Baojun.

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