The stock of General Motors Company (NYSE: GM) ended yesterday’s session at $31.65, higher by approximately 1.93 percent against the previous day’s close. The shares of the car manufacturer are trading lower by around 7 percent up till now this year, compared to the 2.28 percent gain of the S&P 500 index over the same period.
Wall Street analysts have maintained their bullish view on the GM stock ever since the automaker regained momentum after its ignition switch issue. In the present week, analyst at S&P Global Market Intelligence Efraim Levy issued a research note pointing out that General Motors and its major competitor Ford Motor Company (NYSE: F) are on track to overtake the high-end electric vehicle maker Tesla Motors Inc (NASDAQ: TSLA).
According to Levy, the electrification of the power train of the vehicles is on track to be boosted over the next decade. Hence, this will improve its penetration into the market, which has been overshadowed during the previous century by gasoline-driven vehicles.
Over the previous 6 years, General Motors has invested up to $2 billion in order to convert its vehicles to electric engines. The largest US auto maker, which is also the leading player in the Chinese market, anticipates to sell more than 500,000 green-energy vehicles in a period of 2 years from now.
Out of the 21 analysts covering the GM stock, nearly half recommend a Buy position, while the remaining 10 analysts suggest a Hold. None of these Wall Street analysts gave the car maker a Sell rating. Meanwhile, the 12-month consensus price target for the stock of General Motors stands at $37.93.
Mr. Colin Langan, an analyst at UBS, has the most bullish view on the stock. The UBS analyst recommended Buy and set a 12-month price target of $47.
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