General Motors‘ shares jumped nearly 6% as of Wednesday’s midday after five major Wall Street firms commented on the second quarter earnings results reported on Tuesday.
Deutsche Bank, Barclays, and Bank of America lowered their price target on the Detroit automaker while Citi and Wells Fargo increased it to $61 and $38, respectively.
On Tuesday, the company’s shares plunged by 8.1% closing at $48.89.
Deutsche Bank analyst Edison Yu said earlier this Wednesday that, despite the “better than feared” results, the company’s shares on Tuesday reflected “a weaker second half with pricing uncertainties.”
GM reaffirmed its full year financial guidance despite uncertainty around US tariffs.
Yu lowered the firm’s price target on GM from $55 to $53, which implies a 8.4% upside potential on the stock, based on Tuesday’s close.
“Notably, we saw negative fleet pricing more than offset positive retail trends,” the analyst added, saying that “fleet pricing is expected to be an ongoing drag in the second half.”
GM‘s automotive cash flow registered a sharp drop of nearly 40% year over year to $4.65 billion.
The automotive debt raised by $1.7 billion in the first half of 2025 to $17.2 billion, with liquidity falling from $35.5 billion to $34.7 billion in the first six months of the year.
Deutsche Bank cut their 2025 EBIT (earnings before interest and taxes) estimates by $500 million to $11.5 billion — still above the $11.4 billion consensus. Yu maintained a Hold rating on the stock.
The second quarters’ adjusted EBIT (earnings before interests and taxes) was 31.6% down year over year, at $3.04 billion.
Considering the first quarter’s EBIT at $3.5 billion, Deutsche Bank now estimates GM to report a $4.96 billion EBIT value in the second half.
“Looking out to 2026, we think the company’s profitability faces several unknowns including tariff impact, EV losses, volume, and pricing,” Yu wrote.
He added that “while management is optimistic that the tariff rates could get reduced, pricing and volume appear to be constant trade-offs, and the trajectory of EV losses also appears difficult to assess.”
General Motors lowered its 2025 financial guidance earlier this year, as it aimed for an adjusted EBIT of between $10—$12.5 billion, down from $13.7—15.7 billion.
By then, the Detroit automaker predicted a tariff impact of $4 billion to $5 billion — which was reaffirmed on Tuesday’s report.
Reiterating a Buy rating on the stock, Bank of America (BofA) analyst John Murphy said that “GM was able to deliver a respectable quarter,” despite the company having admitted that it failed to mitigate tariff offsets — with a $1.1 billion net impact.
GM said to be “making solid progress to mitigate at least 30% of this impact through manufacturing adjustments, targeted costs initiatives, and consistent pricing.”
The analyst has “confidence that over time this will be further reduced,” which “appears to be already in motion with GM‘s initiatives to increase production in the US.”
The Detroit automaker has recently invested $4 billion to expand production of internal combustion engine (ICE) vehicles, which has been parted by three facilities.
Last week, GM announced it has halted plans to produce EVs in its Orion plant, where it will manufacture ICE vehicles instead, from “early 2027,” to help the automaker “meet continued strong customer demand.”
“Although we don’t love the potentially higher capex (capital expenditures), we acknowledge that competitors are in the same boat,” Murphy noted, adding that it “makes the impact more digestible.”
The firm lowered its price target from $65 to $62, which still implies an upside potential of 26.8%.
Citi analyst Michael Ward highlighted the good results among the impact of tariffs and daily uncertainty around regulation changes.
According to the analyst, GM “has the most leverage to positive trade agreements” among the companies Citi covers. Therefore, it maintained a Buy rating on the Detroit automaker’s stock.
Ward raised the firm’s price target on the company from $59 to $61, which implies an upside potential of 24.8%.
Wells Fargo analyst Colin M. Langan also lifted General Motors‘ price target to $38 (from $34). However, the firm’s target implies a downside of 22% on the shares’ value. It kept an Underweight rating on the stock.
Barclays slashed its target on the Detroit automaker by 42.9% to $40 — from $70. The new price target implies a downside of 18.2%. The rating was also lowered from Overweight to Equal Weight.
