General Motors wins Deutsche Bank upgrade, says risks priced into stock

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General Motors wins Deutsche Bank upgrade, says risks priced into stock

The way forward for General Motors is higher as the risks related to a second Trump administration have already been factored into the stock price, according to Deutsche Bank. Analyst Edison Yu upgraded the maker of Cadillacs and Buicks to buy from hold. He also raised his price target on the stock to $60 from $56, implying upside of almost 18% from Friday’s close. “While there are concerns about the cycle and potential policies of the new Trump administration, our view is that these risks are already very well-known and there’s room for positive surprises (e.g., pricing holds up better, no Mexico tariffs, etc.),” Yu wrote. GM 1Y mountain GM shares in past year. “With GM stock having outperformed Ford significantly last year, we could envision 2025 being directionally similar,” he added. Donald Trump was inaugurated as the 47th president on Monday. On his first day, he signed a flurry of executive orders, though none included tariffs on goods from key trading partners such as China, Mexico or Canada. To be sure, Trump floated the idea of 25% levies on goods coming from Canada and Mexico, huge centers of production for the auto industry. Yu added: “GM 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 [electric vehicle] slowdown, tariff concerns and potential policy changes.” GM shares soared 48% in 2024 despite the auto industry having to pare back efforts in the electric vehicle sector due to shifting consumer preferences. So far in early 2025, GM is down 4.3%. Analysts covering the stock are mostly split. LSEG data shows that 15 of 29 who cover the automaker rate it a buy or strong buy. Another 14 have a hold or underperform ratings. That said, the average price target signals 17% upside.

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