GM provides ‘upbeat’ tone in update, but ‘slim’ details on EV and AV, says BofA

BofA made no change to the firm’s Buy rating or $75 price target on General Motors after the company provided a business update post finalization of the new contract with the UAW. GM‘s general tone was “upbeat,” highlighting increased returns to shareholders, a revised strong outlook for FY23, and cost-cutting actions, but incremental plans to address the turmoil at Cruise and the slow ramp of EVs were slim, the analyst tells investors in a research note. Great clarity will be needed to create sustained upside in the stock, particularly around GM’s evolving long-term strategy on EVs and AVs, the firm says.