TD Cowen has increased its price target on General Motors to $122.00 from $110.00 while maintaining a Buy rating, citing the automaker’s solid performance in the fourth quarter and several forward-looking earnings drivers.
The research house pointed to upside to GM’s 2026 guidance and a route to roughly $16 billion in EBIT next year - a level TD Cowen said would amount to a 16% year-over-year improvement and would sit above the consensus estimate of $14.9 billion. The firm also identified accelerating software momentum as a positive catalyst for future results and designated General Motors as its Top Pick among automotive stocks.
Shares of General Motors were trading at $86.38, slightly under their 52-week high of $87.31, after appreciating roughly 74.41% over the past year. InvestingPro data cited by the research notes a strong free cash flow yield of 19% for the $78.09 billion automaker.
On the company reporting side, General Motors posted fourth-quarter 2025 earnings per share of $2.51, beating analysts’ expectation of $2.24. Revenue in the period was $45.29 billion, narrowly below the anticipated $45.88 billion. In response to the quarter, Mizuho raised its price objective on GM from $100 to $105 and maintained an Outperform rating.
Volume metrics and production trends present a mixed picture. GM reported a decline in wholesale volumes of approximately 10% year-over-year, while global light vehicle production increased by around 4% over the same interval. These divergent trends highlight ongoing operational and market dynamics facing the automaker.
Management commentary also flagged strategic headwinds. CEO Mary Barra expressed concerns during an employee meeting about Canada’s decision to allow imports of lower-cost Chinese electric vehicles, describing the move as a "slippery slope" for North American auto manufacturing. That remark underscores potential regional competitive pressures tied to EV trade policy.
TD Cowen’s upward revision and designation of GM as a Top Pick reflect the firm’s view that the company can deliver stronger-than-expected profitability and that multiple expansion is a reasonable prospect despite recent share price gains. The firm’s assessment rests on projected EBIT improvement, cash flow strength, and software-related revenue growth as key inputs.
Investors and market participants will likely weigh these bullish analyst signals against the company’s revenue miss, the decline in wholesale volumes, and potential market disruption from low-cost EV imports when assessing GM’s near-term outlook.