General Motors is headed for a “renaissance” of growth in electric-vehicles, according to this tech analyst, who initiated coverage of the stock giving the shares a target price implying that they could rise 50%.

Dan Ives of Wedbush, who is also bullish on Tesla
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said late Thursday that CEO Mary Barra has led the group back to the top of the U.S. car industry, with the auto giant now accounting for more than 17% market share—and poised for more growth.

Shares in GM
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-0.94%

ticked up 2.5% in the U.S. premarket on Friday.

GM plans an ambitious strategy for electric vehicles, involving $35 billion in research and development by 2025 to drive the rollout of new models and the development of cutting-edge battery technology.

Also read: This new ‘Tesla fighter’ from Mercedes beats out the Model S on two key measures, UBS says

“Going forward GM continues to be a re-rating story as the Street treats the Detroit automaker no longer as a traditional auto company trading based on book value, but a broader disruptive technology play that can start to trade at multiples similar to the likes of Tesla and other pure-play electric vehicle companies as GM executes on its vision,” Ives said, as he initiated coverage of the stock, rating it to Outperform.

“With at least 20 new models of electric vehicles coming out within the next two years and 30 in the next three, 2021 serves as an inflection point for the legacy auto company as they are completely shifting focus towards an electric future,” the analyst added.

Ives gave GM stock a target price of $85. With the shares trading around $56, that suggests the stock has legs to climb 50% higher.

If the market recognizes the value of GM’s electric-vehicle strategy, as Ives suggested, the stock would follow a similar path as the likes of Volkswagen
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and Ford
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which have both seen their share prices climb this year as they’ve outlined their own EV ambitions.

Plus: This key Tesla rival has a $36 billion plan to win the electric-vehicle race. Here’s what you need to know

In the U.S., GM faces tough competition from the likes of Ford, Tesla, and Stellantis
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—the group formed out of the $52 billion merger of Fiat Chrysler and PSA earlier this year, which includes brands like Dodge, Jeep, Peugeot, and Citroen.

On Thursday, Stellantis announced a strategy to invest €30 billion ($36 billion) in an EV strategy that would see all-electric models rolled out across its 14 brands. The group’s plan includes launch an all-electric Dodge Ram pickup truck by 2024.

Analysts are closely watching developments in the electric pickup truck market in the U.S., which has historically been a strong cash generator and represents a pivotal market for turning the wider population on the road to other electric-vehicles.

Ford’s electric F-150 is expected in coming quarters, as is an electric version of the Chevrolet Silverado from GM.

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