4 GM analysts break down Q1 earnings: ‘It’s just a loan from 2023’

General Motors Company GM reported first-quarter results on Tuesday, with revenue of $35.98 billion missing Street’s expectations and adjusted earnings of $2.09 per share significantly beating the consensus estimate of $1.68 per share .

RBC Capital Markets on General Motors: Analyst Joseph Spak maintained an outperform rating while cutting RBC’s price target for the company from $70 to $58.

Although the company beat earnings and reiterated its guidance, “the ‘how’ is unlikely to quell concerns,” the analyst wrote. He said General Motors had “$3 billion more in the system” but managed to maintain its forecast “with the help of price.”

General Motors is delaying some investments to “manage in the short term,” Spak said. It “doesn’t help the narrative of trying to beat Tesla” and General Motors will still have to invest, “so really it’s just borrowing from 2023,” he added.

Wells Fargo on General Motors: Analyst Colin Langan reiterated an overweight rating for GM while raising the price target from $72 to $74.

Analyst Langan wrote in the note, “GM sees commodity headwinds being mostly offset by still-high prices.” He added: “They also indicated that some help could come from deferring some of the $1 billion in planned capital initiatives.”

Morgan Stanley on General Motors: Analyst Adam Jonas maintained an equal weight rating and $50 price target for GM.

“Impressive cost performance for GMNA given the lack of 100,000 wholesale in the US,” Jones wrote in the memo. He added, “The company said tens of thousands of vehicles were in transit from Mexico and were not billed during the quarter, which will be included in subsequent periods.”

General Motors has also struck a “balance between very high prices and even higher input cost pressures,” the analyst said.

Wedbush on General Motors: Daniel Ives maintained an outperform rating for the company while lowering the company’s price target from $85 to $50.

“The highlight of the first quarter was that GM easily beat Adjusted EBIT ($4.04 billion vs. Street’s estimate of $3.38 billion) coupled with better-than-expected volume production. for the remainder of 2022,” Ives said in the note.

“Barra & Co. appeared confident that supply chain issues were easing and chip supply would improve in 2022 as the company reaffirmed its volume growth forecast of 25% to 30% in 2022” , said the analyst. “That’s a strong number for GM,” he added.

GM Price Action: GM shares gained 1.63% to $38.66 on Wednesday afternoon, according to Benzinga Pro.

GM CEO Mary Barra. Benzinga file photo by Dustin Blichok.

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