Analysts at Deutsche Bank on Friday upped their price target on General Motors Co. GM, +0.51% by 12% to $48 from $43, representing an upside around 12% over Friday prices, saying that the company’s new push toward electric vehicles puts it on track for leadership in that area.
GM earlier this week said it would invest more in EVs and autonomous vehicles. That strategic update also “implicitly” confirmed that GM will not spin off EV or related assets, the Deutsche Bank analysts said. “We are very encouraged by GM’s updated product and investment strategy and targeted cost/margin trajectory, which could ultimately give it a strong market position and solid profitability in EVs,” they said. Shares of GM were poised to end the week up more than 4% and so far this year have gained 17%, compared with gains around 11% for the S&P 500 index.