VW competitor shares in focus: Deutsche Bank sees entry-level prices for this car manufacturer

• Deutsche Bank upgraded General Motors to “Buy” from “Hold.”
• Price target increases to $90
• Tariff charges expected to reach $800 million while supporting operational progress in EVs

Deutsche Bank analysts have sent a clear signal for the US automotive sector. In a recent study quoted by “The Street”, the institute upgraded General Motors (GM) shares from “Hold” to “Buy” and raised the price target from 83 to 90 US dollars. The experts are thus reacting to the previous share price balance, which has been rather sobering over the course of the year: While the overall market was able to gain significantly in some cases, the share price on the NYSE has barely moved. However, according to analyst Edison Yu, this sideways level now offers an attractive entry point for a potentially multi-year revaluation.

Strong core business and new growth areas

Despite the subdued share price development, General Motors’ operational backbone remains stable. The core business with high-margin pickup trucks and SUVs continues to provide robust cash flows, even though sales fell by almost 10 percent to 626,429 vehicles in the first quarter due to weather. Deutsche Bank sees this as a temporary phenomenon due to extreme winter storms. In addition to classic vehicle sales, GM is pushing ahead with its transformation into a technology group: With expected OnStar sales of $7.5 billion and a new $6 billion share buyback program, management is underpinning its ambitions in this area.

Broad market consensus supports the buy recommendation

Deutsche Bank is not alone in its positive assessment. A look at the data from the TipRanks analysis platform underlines the optimistic mood among the experts: out of a total of 20 analyst ratings listed, 16 are currently “Buy”, while three experts leave the stock on “Hold” and only one recommends selling. At $96.83, the average price target of the entire group of analysts is even higher than Deutsche Bank’s current estimate, which implies significant upside potential for the Detroit automaker.

Operational bright spots against fiscal headwinds

Deutsche Bank expects differentiated developments for the first quarter of 2026. “Looking specifically at GM’s first quarter, we expect some deterioration in volume and mix compared to last year, with pricing helping to mitigate this,” The Street quoted the experts as saying. Tariffs remain a key burden: Despite less media attention, the bank expects costs of $800 million for the quarter. This is offset by lower EV losses, savings in warranty costs and a growing software and service business. Projections call for a $400 million reduction in electric vehicle (EV) losses and $250 million in warranty cost savings. In addition, the software and services area is gaining momentum, while the group is already preparing the transition to a next-generation truck platform for 2027.

Investments and financial stability

In parallel with the positive response from analysts, GM is underlining its global strategy through targeted investments. The group is investing $600 million in its South Korean production facilities to consolidate its market position in small SUVs. Financially, GM Financial also secured fresh capital amounting to $1.4 billion through a bond issue.

Despite minor operational challenges, such as a current recall of around 33,000 Corvette vehicles due to a software error in the indicators, the experts’ conclusion remains positive. According to Deutsche Bank, many key factors are directly in the hands of GM management, which supports confidence for a turnaround in the share price.

Claudia Stephan, editorial team at finanzen.net

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