GM Stock Pops on Deutsche Bank Upgrade Ahead of Q4 Earnings

Shares of General Motors (GM) rose Tuesday after Deutsche Bank analysts upgraded the automaker’s stock ahead of its fourth-quarter earnings report.

The analysts upgraded the Chevrolet and Cadillac parent’s stock to a “buy” rating from a “hold,” and lifted their price target to $60 from $56, a premium of about 18% from GM’s closing level Friday.

In the note previewing fourth-quarter earnings from U.S. automakers, the analysts said they envision GM’s stock continuing to outperform rival Ford’s (F) in 2025. “For 4Q itself, we think GM will report toward the high end of its guidance range, while Ford should be more in line,” they wrote.

Restructuring in China, Axing Cruise Program Seen as Positive Moves

The analysts noted recent decisions from GM, like halting development of its Cruise robotaxis and restructuring its struggling operations in China, as positive strategic moves.

They also said the company’s “consistent track record of execution, and aggressive share buyback trajectory” gives them confidence in the stock despite potentially harmful policies to the electric vehicle industry that could come from the new Trump administration.

Looking to the next fiscal year, the analysts expect GM to maintain its projections of flat year-over-year earnings before interest and taxes (EBIT), while Ford could lower its guidance for the same metric. GM is set to report Q4 results before the bell on Jan. 28, while Ford’s are expected after markets close on Feb. 5.

GM shares were up 5% Tuesday afternoon and have risen 50% over the past 12 months.