General Motors plans to invest $76 million in its two US manufacturing plants to boost the production capacities of its Chevrolet Silverado and GMC Sierra pickup trucks.
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GM (GM) intends to inject $70 million in its Tonawanda, New York engine factory and over $6 million in its Parma, Ohio metal stamping facility. According to the company, “The Tonawanda investment will be used to increase capacity on the engine block machining line and the Parma investment will be used to construct four new metal assembly cells to support increased truck production volumes.”
“GM continues to invest to strengthen our core business and respond to growing customer demand for our full-size pickups,” said GM’s Phil Kienle. “Our Tonawanda and Parma teams are dedicated to building world-class products for our customers and these investments reflect our confidence in these teams.” (See GM stock analysis on TipRanks)
Last month, Deutsche Bank analyst Emmanuel Rosner raised the stock’s price target to $48 (15.3% upside potential) from $43 and reiterated a Buy rating. Rosner pointed out that GM’s increased investment plan hints at its strategy of accelerating electric vehicles rollout.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 10 Buys and 1 Hold. The average price target stands at $51 and implies upside potential of about 22.5% to current levels. Shares have increased 13.7% year-to-date.
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