GM Is Up 22% in 2024. 1 Wall Street Analyst Expects a Longer Run

There are growing worries about the sales of electric cars in the near future. Due to rising consumer interest in gasoline-electric hybrid vehicles, worries about public charging, and higher financing rates, the pace of development in the electric vehicle (EV) market in the US has slowed significantly. Nevertheless, the sector is still growing.

Amidst this, Mizuho Financial Group lowered its ratings on multiple manufacturers of fully electric vehicles late on Sunday. Meanwhile, it raised its price objective on GM (NYSE: GM).

This is why Mizuho prefers General Motors above other electric vehicle manufacturers

Though he believes broad EV adoption is probable in the long run, Mizuho analyst Vijay Rakesh expressed near-term worries about customer demand for all electric vehicles in a report that downgraded many EV manufacturers. He mentioned that the bank's analysts had recently reduced their prediction for electric vehicle sales growth in 2024 from 25% to 15%.

In light of this, Rakesh feels slightly more optimistic about GM. He mentioned that GM's sales of profitable internal combustion vehicles are still strong and that he still supports the company's strategy of a phased rollout of electric vehicles. The bank's price target for General Motors was raised from $44 to $48 by him, indicating a 10% increase from present levels over the next 12 months. The rating of "buy" was maintained.

Even though EV demand is low right now, General Motors has a solution: EVs are the wave of the future. I believe the majority of investors now see that as apparent. The reasons I listed above are also the main reasons why that future seems a little further away now than it did a few years ago

From that perspective, I agree with Rakesh. GM stock has risen almost 21% so far in 2024, thanks to the many positive things that investors have seen about the company.

True, General Motors' most recent electric vehicles have experienced humiliating software issues. However, the technology behind its electric vehicle battery and engine seems to be top-notch.

And with the healthy cash flow it's still getting from gas-powered SUVs and trucks, GM will have plenty of time to perfect its next electric vehicles (EVs) and ease into its ultimate transition to a totally electric future.

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