Street View: GM's long-term story remains intact despite margin concerns

General Motors

Yesterday 10:23

** General Motors' GM.N Q3 core profit rose sharply on strong pickup truck sales, while the automaker signaled pressure in the coming months from higher commodity costs and softer truck demand
** Median PT of 27 brokerages covering the stock is $100.5 - LSEG-compiled data
     
BULL CASE ROLLS ON
** J.P. Morgan ("overweight," PT: $105) says said GM is banking on new pickup truck launches, growing software revenue and lower EV losses to offset rising commodity costs, though margin expansion could remain challenging if raw material prices stay elevated
** Morgan Stanley ("overweight," PT: $95) says GM's product refresh cycle, lower EV-related losses and growing software revenue should help offset cost pressures, while any moderation in commodity inflation could provide additional upside to earnings
** Piper Sandler ("overweight," PT: $91) says it expects GM shares to remain under pressure until co provides 2027 guidance, though it sees relief ahead from strong free cash flow, a $20 bln buyback program and improvements in software revenue, warranty costs and EV profitability
** TD Cowen ("buy," PT: $132) says GM's pullback looks overdone, with truck launches, software growth, lower EV losses and buybacks expected to support earnings growth
     

 (Reporting by Rashika Singh in Bengaluru)
 ((rashika.singh@thomsonreuters.com))