RBC Capital increased its target price for General Motors (NYSE:GM) to $107.00 from $92.00 while retaining an Outperform rating on the stock. At the time of the update, GM shares were trading at $85.46, close to the companys 52-week high of $87.31 and having produced a 74.41% total return over the past year.
The investment bank set out a view for 2026 that weighs several countervailing forces. On the one hand, RBC highlighted potential headwinds stemming from commodity costs and onshoring pressures. On the other hand, the firm pointed to offsetting elements that could support margins and results, including regulatory benefits, improvements in warranty experience, a reduction in electric vehicle losses, and lower tariffs should USMCA negotiations produce a resolution.
After incorporating a USMCA resolution into its models, RBCs 2026 adjusted EBIT estimate for General Motors rose above consensus. The bank noted that this scenario is not included in the companys current guidance, creating a divergence between the firms outlook and managements stated trajectory.
RBC also argued that General Motors is positioned to navigate a slowdown in EV demand without sacrificing production flexibility - an attribute the firm said would allow the automaker to quickly scale manufacturing up if demand recovers. The analyst note emphasized GMs pricing discipline and referenced $6 billion in shareholder returns, which RBC estimated to be roughly 8% of the automakers market capitalization, as further justification for its Outperform stance.
Those analyst views followed General Motorss fourth-quarter 2025 financial release. The company reported adjusted earnings per share of $2.51, topping the analyst consensus of $2.24. Revenue for the quarter was $45.3 billion, slightly below the $45.88 billion expected by the market. Despite the revenue shortfall, several analyst firms described the quarterly results as solid and responded by raising their price targets.
Specific adjustments by other firms included Piper Sandler increasing its price objective to $105 while maintaining an Overweight rating and citing higher EPS expectations. TD Cowen lifted its target to $122, pointing to upside tied to potential future earnings and EBIT progression. Mizuho also moved its target to $105 and kept an Outperform rating.
In a separate strategic development, GMs CEO expressed concerns about Canadas decision to allow imports of Chinese electric vehicles, arguing that the move could affect North American auto manufacturing. That comment underscores an ongoing interplay between corporate performance and trade policy dynamics for the automaker.
Taken together, the array of analyst revisions and management commentary reflect a mix of financial performance and industry-level considerations shaping market expectations for General Motors as it moves into 2026.