Barclays analyst Brian Johnson raised his price target for General Motors (GM) to $57 from $55 following yesterday’s tech day.
The automaker closed yesterday down 72c to $43.09. While some view GM’s target of commercially launching at scale autonomous ridesharing in dense urban environments in 2019 as an unrealistic target, similar to the timelines pushed by Tesla (TSLA), time with management indicated this seems possible, Johnson tells investors in a research note. GM’s technology is real, and the company has a fail-safe with the autonomous vehicles to be monitored by humans at control centers, the analyst contends.
The tech day reinforced Johnson’s view that GM has first mover advantage in mobility. He believes the shares are due for a “multiple re-rating” and reiterates an Overweight rating on GM.
