GM: HSBC raises target price

(CercleFinance.com) - HSBC announced on Monday that it had raised its target price for GM shars from $56 to $58, while maintaining its buy recommendation on the stock.


In comments on US automakers, the broker refers to "resilient" demand, but also to sharply contrasting sales dynamics between the "Big Three".

While Ford and GM saw their sales increase by 6% and 2% respectively over the summer period (July-August), those of Stellantis fell by 19%, notes the broker.

As far as GM is concerned, the strength of the results published for the second quarter should make up for weaker performance in the second half of the year, he points out, while revising downwards his forecasts for 2025 by 6% in view of a more difficult market environment.

In view of the share's discount, however, HSBC is maintaining its Buy recommendation on the stock, citing the prospect of higher earnings per share (EPS) due to the Group's substantial share buybacks.


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