General Motors' Digital Opportunity Underappreciated, UBS Says

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.

GM aims to develop a domestic battery supply chain within 2-3 years, focusing on sodium-ion cells with Denver-based Peak Energy. The company is investing $900M in battery research facilities, targeting commercial production by 2029. GM's approach contrasts with Ford's use of Chinese battery technology, which has drawn scrutiny from the Trump administration.

UBS analyst Joseph Spak highlights GM's underappreciated digital capabilities, raising its price target to $114. GM's total digital revenue could reach $9.6B by 2036, tripling over a decade. 22 of 29 analysts rate GM a buy or strong buy. Shares are up 5% YTD, underperforming the market.