Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Citi: GM Truck Story Strong And Underappreciated

Courtesy of Benzinga.

Citi: GM Truck Story Strong And Underappreciated

General Motors Company (NYSE: GM) turned in mixed results in the second quarter, and investors were lukewarm on the automaker, but one sell-side analyst said Friday GM’s pickup truck story is unique and set for more success – but isn’t well understood.

The Analyst

Citi Research analyst Itay Michaeli reiterated a Buy rating and raised the target price from $67 to $68.

The Thesis

GM’s results are sustainable, Michaeli said, in part because pickup trucks, which are the majority of GM’s earnings per share, have undergone “years of structural demand explosion.”

Add to that a fleet age that suggests pent-up demand through 2024 and pickups appear less susceptible to industry disruption, and GM has a story that is “unique and compelling.”

Michaeli liked management’s confidence about the second half outlook, and while the consensus has GM turning in a year over year decline in 2020, Michaeli said Citi believes GM can grow EPS next year.

GM beat analysts’ estimates on earnings per share this week, but slightly missed Street expectations on sales.

Price Action

GM shares were slightly lower on Friday, down 0.9% to $39.77.

Related Links:

General Motors Trades Higher On Q2 Earnings Beat

Stock Wars: GM Vs. Ford Vs. Tesla Vs. Toyota

Latest Ratings for GM

Date Firm Action From To
Aug 2019 Maintains Buy
Jun 2019 Initiates Coverage On Outperform
Feb 2019 Initiates Coverage On Buy

View More Analyst Ratings for GM


View the Latest Analyst Ratings

Posted-In: Citi Itay Michaeli US automotive industryAnalyst Color Price Target Analyst Ratings Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!