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UBS upgrades shares of General Motors on Wednesday, telling clients the automaker can manage tariff costs and that the stock is cheap. UBS raised its GM rating to buy from neutral and ratcheted up its price target to $81 from $56. The new target is nearly 40% higher than Tuesday’s close. The investment bank noted its earnings estimates for the next two years are materially higher than the rest of Wall Street. “While tariffs have added costs that GM won’t pass through to the consumer, we believe GM has a number of levers at their disposal to offset the headwind,” wrote analyst Joseph Spak. “Combined with a strong FCF profile, a capital allocation policy that could support buying back [shares] … and an inexpensive valuation, we see a positive setup for the shares.” GM shares added 2% in a mostly little changed tape after the call. The stock has underperformed the market for most of this year amid the Trump administration’s fluctuating trade policy. The shares are up 21% this quarter, however, putting GM up 12% year-to-date. UBS noted that GM said tariffs hurt margins by about 3% last quarter. The firm believes the automaker can make up that difference because of likely tariff relief from Trump for Mexico and South Korea. Lower emission standards lowering regulatory credit expenses for GM will also help, UBS said. With a price-earning ratio of just 6 using earnings estimates for the next 12 months, GM shares are trading near the lower end of its historical range of a 5 to 8 P/E per UBS. The report also noted rate cuts could help GM, making new cars easier to finance. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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