Citi resets outlook on General Motors' stock price target

For astir of 2026, General Motors (GM) has been a banal that makes investors nervous. From tariff headlines, EV restructuring charges, a warfare successful the Middle East pushing up earthy worldly costs, and a stock terms that's down year-to-date, adjacent arsenic the one-year instrumentality sits astatine an awesome 70%. Then came the first-quarter net report. And the communicative shifted.

GM delivered adjusted EPS of $3.70, good supra the $2.62 statement estimation (41% beat). EBIT-adjusted roseate 22% twelvemonth implicit twelvemonth to $4.25 billion. An further boost came from a Supreme Court of the United States ruling connected IEEPA tariffs, which provided an unexpected $500 cardinal tailwind. Management utilized that payment to rise full-year guidance.

"Our EBIT-adjusted of $4.3 cardinal surpassed our expectations adjacent aft excluding a $500 cardinal tariff adjustment," CEO Mary Barra wrote successful her missive to shareholders. "As we determination forward, I'm assured this volition proceed to differentiate GM and enactment semipermanent worth instauration for our owners."

Citi responded by raising its General Motors terms people to $108 from $105, maintaining its Buy rating. It frames GM arsenic a self-help communicative wherever margins are expanding adjacent arsenic volumes look pressure.

GM's Q1 2026 net bushed Wall Street connected the metrics that substance astir

The quarter's spot wasn't concentrated successful 1 part oregon 1 accounting line. It was broad, according to GM's April 28 net release:

• Revenue of $43.62 billion, down 0.9% twelvemonth implicit twelvemonth from $44.02 cardinal successful Q1 2025.

• Adjusted EPS of $3.70 versus $2.62 consensus, a bushed of much than $1 per share.

• EBIT-adjusted of $4.3 billion, up 22% twelvemonth implicit twelvemonth from $3.49 billion

• Net income attributable to stockholders of $2.6 billion.
  Source: General Motors 2026 First-Quarter Results

The gross miss comparative to the anterior twelvemonth needs context. Volume declined, with planetary conveyance income falling to 1.295 cardinal units, portion U.S. marketplace stock slipped to 16.5% from 17.2%. However, General Motors offset that softness done pricing subject and outgo management.

CFO Paul Jacobson told CNBC that the institution got up of costs successful a meaningful mode during the quarter, noting that beardown execution drove the net beat.

The institution besides declared a quarterly currency dividend of $0.18 per share, payable June 18, 2026, according to the net release.

Citi's $108 people reflects assurance successful the buyback-driven borderline communicative

Citi's bull lawsuit connected General Motors is not chiefly a measurement story. It's a superior ratio story. The slope raised its terms people to $108 from $105, maintaining a Buy rating, citing GM's Q1 bushed against a volatile geopolitical backdrop, improved fiscal performance, and a steadily declining stock number driven by accordant buybacks.