Wolfe Research upgrades GM on 2027 tailwinds
Analyst cites declining EV losses, refreshed pickup lineup in setting $96 price target
General Motors shares rose on Wednesday after Wolfe Research upgraded the automaker to Outperform from Peer Perform, setting a price target of $96 that represents approximately 25% upside from current levels.
Analyst Emmanuel Rosner told investors that the market may be underestimating potential benefits for GM heading into 2027, even as the automaker faces what could be a modest increase in raw material costs this year. The $96 target is based on applying GM's recent average 6x forward price-to-earnings multiple, with Rosner noting potential for further multiple expansion driven by growing software and services revenue.
Wolfe Research forecasts GM's earnings per share will reach $12.37 in 2026 before accelerating to $16.03 in 2027. The upgraded rating reflects what Rosner described as several specific "2027 tailwinds" expected to drive profitability, including the introduction of a refreshed full-size pickup lineup, ongoing reductions in warranty expenses, declining net tariff impacts, and a further decrease in electric vehicle losses.
GM has been working aggressively to reduce costs in its EV business, with the company targeting $1 billion to $1.5 billion in EV cost cuts for 2026, even as it expects a slower ramp-up in electric vehicle volume. The automaker incurred more than $7 billion in EV-related charges in 2025 due to contract cancellations and production adjustments, part of a broader recalibration of its electrification strategy.
Despite the broader slowdown in EV adoption across the industry, GM has solidified its position as the second-largest electric vehicle seller in the United States. The automaker captured 13.2% of the US EV market in 2025, up from 8.8% in 2024, putting it ahead of Ford's 6.6% share while still trailing Tesla's dominant position. Tesla held 58.9% of the market as of the fourth quarter of 2025.
The company's Ultium platform remains central to its EV strategy, with GM announcing that all Ultium-based electric vehicles will feature vehicle-to-home (V2H) bidirectional charging technology by model year 2026. The platform is also transitioning to Lithium Manganese Rich battery chemistries to lower production costs.
Beyond vehicles, GM is building a substantial software and services business that could help justify a higher valuation multiple. The company expects its deferred software revenue backlog to reach approximately $7.5 billion by the end of 2026, up from $5.4 billion at the end of 2025, with an additional $400 million in software revenue expected for the year.
At current levels, GM trades at a market capitalization of roughly $68 billion with a forward price-to-earnings ratio of 5.8 times—well below the 6x multiple used in Wolfe Research's valuation. The broader analyst community remains largely positive on the stock, with 18 analysts rating it a buy versus eight at hold, according to market data. The consensus price target stands at $95.04.
The automaker's shares have recovered from their 52-week low of $41.18 reached last year but remain below the 52-week high of $87.41 set earlier in March. The stock is currently trading below its 50-day moving average of $79.93 but above its 200-day moving average of $66.40, suggesting the shares are in a consolidation phase following a strong rally from last year's lows.