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Up about 28% year-to-date, General Motors (GM -3. 28%) has far outpaced the 7. 1% S-index.
At the start of GM’s stock policy, Roeska assigned a price target of $55 and an outperformance rating. Based on its current value of $45. 94, Roeska’s price target implies an increase of about 20% for GM stock.
Roeska addresses several issues in his initial report on GM’s stock, according to The Fly. Notably, he says GM is poised to generate strong earnings in 2024, offering a catalyst for the stock’s upside. In addition, Roeska is inspired by GM’s good fortunes. in generating greater cash flow and expects the company to distribute $4. 5 billion to shareholders in 2024.
GM this week reported strong currency effects for the first quarter of 2024. On the currency front, GM increased operating money in its auto segment to $3. 6 billion in the first quarter of 2024, up from $2. 2 billion at the same time last year. adjusted loose money in the automotive sectorArray GM reported $1. 1 billion, a sharp change from the negative $132 million reported in the first quarter of 2023.
While Roeska’s target value for GM stock could be encouraging, it’s critical for investors to recognize that Roeska hasn’t provided a time frame for its estimate (the rule of thumb is around 12 months). But analysts apply shorter time horizons for their value targets, so it’s more productive to be a little cautious about Roeska’s value target.
However, GM stock looks interesting right now after the company’s strong start to the year and management’s promising outlook for the rest of 2024, adding an upwardly revised adjusted loose money forecast for cars for 2024 from $8. 5 billion to $10. 5 billion from the original forecast of $8. $10 billion to $10 billion. In addition, the shares are trading at a low price, 5. 5 times higher than existing revenues.
Scott Levine does not hold any positions in any of the stocks mentioned. The Motley Fool recommends General Motors and recommends the following options: $25 calls in January 2025 at General Motors. The Motley Fool has a disclosure policy.
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