Investing.com — Deutsche Bank upgraded General Motors Company (NYSE:GM) to “Buy” from “Hold” on strategic shifts in China and Cruise, robust execution, and an aggressive share buyback strategy.
The brokerage noted concerns about cyclical risks and potential policies under the Trump administration but said these were largely priced in, leaving room for upside surprises such as stable pricing and no Mexico tariffs.
GM has outperformed Ford significantly over the past year. “GM has consistently executed well in the midst of macro uncertainties, and we think this will continue to position the company well for 2025, amid a lingering EV slowdown, tariff concerns, and potential policy changes,” Deutsche Bank (ETR:DBKGn) analysts noted.
The brokerage expects GM’s fourth-quarter earnings to land at the higher end of its guidance, with flat EBIT projected for 2025, supported by share buybacks that could lift EPS.
Whereas Ford Motor Co (NYSE:F) faces potential EBIT declines due to pricing challenges, partially offset by cost controls.
Deutsche Bank also highlighted broader industry developments with Rivian (NASDAQ:RIVN) entering a “transition year” with uncertain demand for its R1 model, while Tesla (NASDAQ:TSLA) expected to leverage AI advancements in robotaxi and robotics and achieve 15% automotive volume growth in 2025.