Street View: Software, not steel, could drive GM's next phase of growth
GM•Software and non-auto businesses seen as new growth levers
TD Cowen ("buy," PT: $132) says the case for multiple expansion has never been stronger and that "the growth picture is starting to form and the mix of high-margin/recurring revenue is growing nicely with a lengthy runway ahead".
Piper Sandler ("overweight," PT: $102) says GM's expanding revenue streams in insurance, defense and software could become meaningful long-term growth levers.
"We think software is the most compelling of the three, with the potential to layer incremental high-margin revenue onto every vehicle GM sells" - Piper Sandler.
Citigroup ("buy," PT: $131) says GM's ability to generate an EBIT margin from North America auto operations of 8%-10% and free cash flow of $10 billion in 2026 are the main positives for the stock.
Morgan Stanley ("overweight," PT: $101) says software and non-auto businesses, including Defense and ESS, are pivotal to drive the next leg of multiple re-rating.
General Motors raises 2026 profit forecast, analysts see more upside
General Motors GM.N raised its 2026 profit forecast on Tuesday for the second time this year, citing strong pricing as U.S. shoppers continue to opt for pricey pickup trucks and SUVs.
Median price target of 28 brokerages covering the stock is $100; their average rating is "buy," according to LSEG-compiled data.
