CFRA raises General Motors stock price target to $64 on strong EV sales

General Motors (GM) is drawing increased analyst confidence, with CFRA raising its price target to $64 and maintaining a Buy rating, citing the automaker's robust Q2 U.S. sales growth of 7.3% and a significant 111% surge in electric vehicle deliveries, which notably outpaced overall market expansion. This positive momentum, coupled with GM's attractive 7.3x P/E ratio, consistent earnings beats, and management's share buybacks, underpins a strong outlook, further reinforced by TD Cowen naming GM a 'top pick' amidst buoyant U.S. auto demand, despite recent minor vehicle recalls.

Analysis

General Motors is receiving reinforced positive sentiment from analysts, underscored by CFRA raising its price target to $64 and TD Cowen designating the company a 'top pick'. This optimism is rooted in strong operational performance, as GM's second-quarter U.S. vehicle sales grew 7.3% year-over-year to 746,588 units, substantially outpacing the overall industry's estimated 1.7% growth. The company's electric vehicle segment is a key driver of this momentum, with U.S. sales surging 111% YoY to 46,280 units. This outperformance is further supported by a reported 12% sales increase for the first half of 2025, compared to 4% for the wider auto industry. Financially, the stock trades at an attractive 7.3x P/E ratio, while management's confidence is signaled through active share buybacks. CFRA's new price target is based on a conservative 6.0x multiple on 2026 estimated EPS of $10.60, a discount to the historical average, suggesting valuation upside even with a cautious outlook. While two vehicle recalls for brake and wiring harness issues have been announced, they appear contained relative to overall sales volume. The company is also expanding its strategic scope through a GM Defense partnership to pursue a UK military vehicle contract, opening a potential new revenue stream.

Key Decisions for Investors

• Given the strong sales growth outpacing the market, a significant surge in EV deliveries, and a low 7.3x P/E ratio, investors may view the stock as undervalued with a compelling growth narrative supported by multiple analyst buy ratings.
• Investors should closely monitor the execution and sales figures of the EV segment, particularly for the Chevy Equinox EV, as this is a primary justification for the bullish analyst sentiment and a critical factor in GM's future valuation.
• While the recent vehicle recalls for the Blazer EV and other models appear minor, it is prudent to watch for any signs of escalating quality control issues that could negatively impact consumer confidence and sales momentum.
• Consider the GM Defense partnership as a long-term call option on the stock, monitoring developments on the UK Ministry of Defence contract as an indicator of potential revenue diversification beyond the core automotive business.