General Motors (GM) has decided to extend OnStar services to anyone in the U.S. and Canada. OnStar is a GM subsidiary that offers safety and security services on subscription and has an accompanying mobile app called Guardian. It was initially exclusively available to drivers of GM vehicles, enabling them to access help on the road when they need it.
Now GM is taking OnStar services beyond its vehicle base. Any driver in the U.S. and Canada can now download the Guardian app and access OnStar emergency assistance. Subscribers can also share OnStar mobile features with up to seven other people.
“As pandemic-related restrictions relax and people begin to travel again, we understand it is important that everyone feels protected and connected. That is why we are expanding this subscription offering based on our expansive insights,” said GM’s connected services executive Santiago Chamorro.
OnStar services include crash response, which uses smartphone sensors to detect crashes and send alerts for help. OnStar is launching a new feature that will let subscribers receive notifications through the Guardian app when a family or friend leaves or arrives at specific locations.
In addition to being there for more drivers when they need help, the expansion of OnStar service also fits with GM’s efforts to diversify its revenue sources beyond vehicle sales. The OnStar plan generates recurring subscription revenue. (See General Motors stock analysis on TipRanks)
Tudor Pickering analyst Matt Portillo recently initiated coverage on GM stock with a Buy rating and $76 price target. This implies 20.2% upside potential.
“We believe the company is well positioned to lean into the industry’s transition towards electrification at an attractive valuation while bolstering equity upside through technological innovation on both the connectivity and autonomy front,” noted Portillo.
Consensus among analysts is a Strong Buy based on 11 Buys and 2 Holds. GM’s average analyst price target of $69.17 implies 9.39% upside potential to current levels.
GM scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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