Buy General Motors stock as tailwinds line up for automaker, says Wolfe Research

General Motors could get a boost from a combination of product-related tailwinds, even as a dim geopolitical outlook poses challenges for the automotive sector, according to Wolfe Research. The firm upgraded the automaker to outperform from peer perform. It also set a $96 price target on the stock, implying 25% upside from Tuesday’s close. “Investors may be underappreciating the magnitude of potential tailwinds into 2027,” analyst Emmanuel Rosner said Wednesday in a note to clients. The launch of the company’s refreshed full-size pickup trucks could prove a roughly $1.7 billion tailwind for General Motors, the analyst noted. GM YTD mountain GM year to date The automaker is also poised to benefit from a lower net tariff burden as it moves some of its production capacity for its to the U.S. from Mexico, according to Wolfe. The firm unveiled last year a plan to invest about $4 billion in manufacturing plants in the U.S. Wolfe also noted that General Motors continues to pile cash into share repurchases, which is expected to fuel a nearly 15% gain in the stock. The firm estimates that General Motors’ free cash flow will stand at $9.9 billion in 2026 and $12.2 billion in 2027. To be sure, “the auto sector is often one of the main targets when macro concerns escalate,” analysts wrote, adding that automotive stock broadly underperform during geopolitical conflicts. “But, history has shown that such periods can also present interesting buying opportunities for select names, as the market begins to price in overly conservative earnings expectations and multiples compress towards trough levels,” Wolfe Research analysts said. The research firm’s call falls in line with consensus on the Street. Of the 30 analysts who cover General Motors, 20 have a buy or strong buy on shares. General Motors’ stock has declined nearly 6% this year, slightly underperforming the overall market.