Citi ups GM target to $95, says earnings selloff ‘unwarranted’

Citi raised the firm’s price target on General Motors to $95 from $89 and reiterates a Buy rating on the shares. The company reported a “strong beat/raise” quarter and the earnings call yielded mostly positive takeaways including with regards to Cruise, new savings, and a confident stance on electric vehicle demand, the analyst tells investors in a research note. The firm attributes the “unwarranted” negative stock reversal to the unexpected Q2 Bolt charge, the electric vehicle module equipment issue noted on the call and perhaps some interpretation that the return of the Bolt implies less Ultium volume in first half of 2024. Stepping back, the “noise” in the quarter does not seem to be very material “while the fundamental upside does,” writes Citi. It expects material upward consensus estimate revisions over the next six months. GM in afternoon trading is down 4% to $37.78.