Bank of America says General Motors remains a leader in the auto industry, despite many investors remaining pessimistic on the stock. Shares of GM declined more than 2% during Wednesday’s trading session. On Tuesday , the automaker announced an earnings and revenue beat for the first quarter. The stock is down more than 4% year to date. Meanwhile, Bank of America has a buy rating on the auto giant. The firm’s price target of $70 implies shares surging 112% from Tuesday’s close price. “You hate it, we like it,” analyst John Murphy wrote in a Wednesday note. “Our Buy rating on GM is predicated on our view that the company remains a leader among the industry in its Core to Future transition.” General Motors recently unveiled the last new gas-powered Buick car , as the brand prepares to move to an all-electric domestic lineup by 2030. The company is bullish that lower-carbon electric vehicles are the future for the auto industry. Murphy noted that the company’s outlook for the second half of 2023 assumes a weaker operating environment. However, he says that GM has made “significant strides” in restructuring its business since its last significant downturn in 2009, which makes it well-positioned in light of cyclical tailwinds and changing industry environment. “GM’s ongoing execution and strength in its Core business continues to enable the company to step up its investments across EVs and [autonomous vehicles], further future-proofing the business,” said Murphy. “Along these lines, GM continues to develop all the necessary components for the future of mobility services, which we believe may help unlock value over time,” the analyst continued. GM 1Y mountain General Motors stock —CNBC’s Michael Bloom contributed to this report.
