Written by Cláudio Afonso | LinkedIn | X
With just over a week before Election Day, Jefferies analyst Philippe Houchois commented on the potential impact of election outcomes on General Motors (GM) stock.
In a new research note released on Monday, Houchois raised the firm’s price target for GM to $52, up from $46, while maintaining a Hold rating on the stock.
“Post results we make minor adjustment to P&L estimates with adj EBIT raised/EPS +1%/2% to $14.6bn/$10.18 but a more meaningful bump to “adjusted FCF” to $13bn which supports another $5bn share buy-backs,” Houchois noted.
As analysts and investors evaluate the potential impact of the upcoming election, Houchois says the firm sees GM stock “as a relative safe haven in either Trump or Harris White House set-up”.
“We missed entry points into GM over the last 12 months but see the stock as a relative safe haven in either Trump or Harris White House set-up. PT raised to $52 ($46) on a combination of earnings strength, balanced powertrain strategy and share count,” he added.
Speaking at The Joe Rogan Experience podcast, former U.S. President and current presidential candidate Donald Trump said “All those guys in Detroit are going to be out of business”.
In the episode, which went live on Saturday, Trump stated, “When they say, ‘go electric,’ China will be the one supplying the cars,” Trump stated, suggesting that American automakers could be left behind. “All those guys in Detroit could be out of business. You’re going to make your electric cars over there,” he added.
For a clip of Trump’s thoughts on the EV industry, see the video below.
Written by Cláudio Afonso | LinkedIn | X
