Bank of America reinstated coverage of General Motors with a Buy rating and a $105 price target. Analysts cited recent regulatory changes favoring profitable internal combustion engine (ICE) vehicles as the primary driver for the positive outlook. This shift allows the automaker to prioritize high-margin trucks and SUVs over less profitable electric vehicles in the near term.
The firm designated 2026 as the year of the pickup and named General Motors and Ford as top sector picks. Analysts expect upward estimate revisions for GM as the company moves away from mandated EV production levels that previously constrained profitability.
General Motors shares rose 0.8% in premarket trading following the announcement.