General Motors has an 'underappreciated' growth driver, UBS says

UBS raised GM's price target to $114, citing growth in its digital business. GM's digital revenue is expected to grow from $3.2B in 2026 to $9.6B by 2036, with OnStar and Super Cruise as key drivers. Deferred digital revenue is projected to reach $15B over the next decade, with subscription revenue growing at a 47% CAGR.

UBS maintained a 'Buy' rating on General Motors (GM) and raised its price target to $114 from $102. GM is seen as overvalued by 30.6% with a GF Value of $66.73. The company has a GF Score of 77/100, indicating solid performance. 17 gurus hold GM stock, with mixed activity. GM's P/E ratio is 40.35x, higher than its 5-year median of 6.57x.

GM is developing sodium-ion battery cells with Peak Energy to reduce reliance on Chinese materials like lithium. Commercial production is expected by 2029. GM is investing $900M in battery labs and aims to prioritize domestic production for EVs. China dominates global battery material production, per the IEA.

Ford and GM are each investing over $1 billion in their Canadian operations despite President Trump's tariffs on Canadian-made vehicles. The companies are expanding production in Canada, according to Automotive News.

UBS estimates GM's digital business could grow to $3.2B-$9.6B, raising its price target to $114. The firm suggests better disclosure of digital metrics could help investors value the segment. UBS believes recurring, predictable profits from connected cars may lead to higher valuation.

UBS believes General Motors' digital opportunities are undervalued. The firm raised its price target to $114 from $102, maintaining a buy rating. GM's stock has seen a 5-day change of +1.80% and a year-to-date change of +7.18%.