Core Viewpoint - General Motors (GM) is predicted to reach a stock price of $200 by the end of 2030, requiring a 130% increase from its current price of approximately $87, translating to an annual growth rate of about 18% [1][2]. Group 1: Stock Valuation and Performance - GM currently trades at about seven times forward earnings, indicating a potential undervaluation given the company's strong performance and ongoing buybacks [2]. - The company has demonstrated resilience during economic downturns, such as the pandemic and inflation surge, suggesting a strong growth outlook [4]. Group 2: Catalysts for Growth - Major catalysts for GM's stock price increase include continued buybacks, which could reduce the outstanding share count by approximately 8% this year, potentially leading to a one-third reduction by 2030 [5]. - The electric vehicle (EV) segment, while currently unprofitable, is expected to achieve profitability sooner than anticipated, supported by CEO Mary Barra's insights on EV adoption trends [5]. - GM's software revenue, particularly from services like OnStar and Super Cruise, is projected to grow by 40% to $7.5 billion this year, representing a high-margin revenue stream that could significantly enhance profitability [5].
Prediction: General Motors Will Be a $200 Stock in 2030. Here's Why.