(News Bulletin 247) – Mizuho initiated coverage of General Motors shares on Thursday with a ‘neutral’ opinion and a price target set at 39 dollars.
In a research note, the analyst praises the ambitions of the American automaker in electric vehicles, which currently represent only 2% of its portfolio.
He also welcomes the group’s vertical integration projects, with the establishment of a battery supply chain via its subsidiary Ultium, as well as its initiatives in assistance systems and autonomous driving.
All of these things bode well for GM, says Mizuho, ​​who is nevertheless concerned about the cost transition from a very profitable model based 98% on combustion engines to electric vehicles which currently generate negative gross margins ranging from -15% to -30%.
Added to this, according to the intermediary, a possible slowdown in the economy and a weakening of car prices, he warns in the note.
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