RBC Capital Hikes General Motors (GM) PT to $107 Following Strong Q4 Earnings Beat

General Motors Company (NYSE:GM) is one of the most undervalued large cap stocks to invest in now. On January 28, following a strong Q4 2025 earnings beat, RBC Capital increased its price target for General Motors from $92 to $107 with an Outperform rating. The firm suggested that GM is well-equipped to counter commodity and onshoring pressures through a combination of regulatory tailwinds, improved warranty costs, and narrowing EV losses, alongside potential benefits from USMCA tariff negotiations.

Furthermore, the firm highlighted General Motors’ strategic agility and noted that the company is effectively navigating the current EV slowdown while retaining the production flexibility necessary to scale up rapidly should demand recover.

On the same day, Morgan Stanley also raised the price target for General Motors Company (NYSE:GM) to $100 from $90, while maintaining an Overweight rating. This announcement was also made following a robust earnings report and 2026 guidance that surpassed consensus expectations. The firm noted that while the initial guidance is strong, there remains significant potential for upward revisions as the year progresses. Additionally, Morgan Stanley highlighted General Motors’ continued commitment to shareholder value, specifically pointing to the company’s newly authorized $6 billion share buyback program as a key driver for investor confidence.

General Motors Company (NYSE:GM) designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. It operates through GM North America, GM International, and GM Financial segments.

While we acknowledge the potential of GM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.