- Jefferies upgrades GM to Buy with a $99 price target, citing stronger U.S. market position.
- The firm expects $10B+ in free cash flow driven by new trucks, efficiency gains, and digital services.
- Jefferies sees room for additional buybacks and raises 2026–2028 earnings forecasts.
Bullish Call on GM
Jefferies upgraded General Motors to Buy from Hold, lifting its price target to $99 from $90, according to a note seen by financial media. The firm expects GM to strengthen its U.S. market position by 2027, with free cash flow exceeding $10 billion annually—fueled by new truck launches, operational efficiency improvements, and growth in digital services.
"GM's product cycle and cost initiatives are underappreciated," Jefferies analysts wrote. The upgrade comes as GM prepares to launch refreshed full-size pickups and SUVs, its most profitable segment. The firm also raised its 2026, 2027, and 2028 earnings estimates, citing potential for additional share buybacks beyond the current $10 billion authorization.
Market Context
GM shares have risen over 40% in the past year, but Jefferies sees further upside. The automaker has been aggressively returning capital to shareholders while investing in electric vehicles and software. The bullish call contrasts with some skepticism about the pace of EV adoption, but Jefferies argues that GM's legacy strength in trucks and internal combustion still generates significant cash.
A spokesperson for GM declined to comment on the analyst report beyond noting the company's focus on execution. The stock rose 2.1% in premarket trading following the upgrade.
Correction: An earlier version of this article misstated the prior price target. It was $90, not $80.