General Motors’ 1Q Vehicle Sales Rise On Strong Auto Demand
General Motors’ total sales rose 4% in the first quarter compared to the same period last year, driven by strong auto demand. The automaker’s shares rose around 3% in early trade on Monday.
During the quarter, General Motors (GM) sold 642,250 vehicles in the U.S. Retail deliveries increased 19% year-on-year, while its fleet sales declined 35%. The company noted that all four U.S. brands reported double-digit growth in retail sales during the quarter.
GM’s executive vice president, Steve Carlisle said, “Sales are off to a strong start in 2021, we are operating our truck and full-size SUV plants at full capacity and we plan to recover lost car and crossover production in the second half of the year where possible.” (See GM stock analysis on TipRanks)
On March 29, Jefferies analyst Philippe Houchois raised the stock’s price target to $62 (4% upside potential) from $50 but maintained a Hold rating. The analyst believes that “bellwether stocks” like GM and Volkswagen have re-rated their valuation multiples higher, amid the rising shift to electric vehicles.
Overall, the rest of the Street has a Strong Buy consensus rating based on 11 Buys and 1 Hold. The average analyst price target of $66.58 implies upside potential of about 11.8% to current levels. Shares have gained about 178.2% in one year.
On TipRanks’ Smart Score ranking, General Motors gets an 8 out of 10, suggesting that the stock is likely to outperform market expectations.
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