General Motors’ artificial intelligence and software integration are underappreciated, and these digital capabilities could boost the stock, according to UBS. The investment bank maintains a buy rating on the automotive stock and raised its price target to $114 from $102, implying 33% upside from Friday’s close. ‘GM’s digital capabilities represent an underappreciated and undervalued opportunity,’ said analyst Joseph Spak in a note to clients on Monday. ‘Digital creates a recurring, less cyclical, higher-margin revenue stream that merits a multiple higher than that of core GM. Additionally, further disclosure or a breakout of digital revenue or profit could support a re-rating.’ GM’s year-to-date digital revenue could reach $9.6 billion by 2036, tripling the current level for this segment, according to UBS. This segment includes GM’s in‑vehicle AI assistant services and the Super Cruise hands‑free driver‑assistance system, offered as a subscription. Spak noted that GM is also leveraging opportunities beyond vehicle sales. ‘As a growing share of its fleet becomes connected, GM can tap into ongoing ownership and secondary‑customer revenues beyond the initial hardware sale,’ he wrote. The UBS call aligns with market consensus. Of the 29 analysts covering GM, 22 have a buy or strong‑buy rating, according to LSEG data. Shares have risen 5% year‑to‑date, lagging the broader market, and were flat in early trading Monday despite market volatility.
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