The shares of General Motors are rallying today after Wedbush rated the company’s stock as outperform.
Wedbush Rates GM’s Stock As Outperform
Wedbush, one of the top wealth management, brokerage and advisory firms in the United States, has boosted its rating of General Motors. According to the firm, General Motors’ stock will outperform the industry over the coming months.
Wedbush said GM’s transition into an electric car company meant that it will now be considered a tech company, and that would be favorable for its stock. The wealth management firm predicts that GM’s stock price would rally by 50% or more in the coming months.
Last month, we reported that General Motors is expanding its position in the electric vehicle sector. The company raised its spending on electric and autonomous vehicles to $35 billion through 2025. It was a 30% increase from the initial budget it made last year.
General Motors said the increase in funding is to allow it to roll out more electric vehicles and boost the production of its battery and fuel cell technologies. The company expects to sell over a million electric cars annually by 2025.
GM Shares Rally Following Stock Upgrade
The shares of General Motors began rallying after the stock received an outperform rating from Wedbush. GM is currently up by 3.6% today and is trading above $58 per share. Year-to-date, GM has performed excellently.
It began 2021 trading at $41 per share. However, numerous changes in the company and the focus on electric vehicles have helped it rally higher and maintains its upward momentum. Currently, GM’s stock price is up by roughly 40% year-to-date.
The stock price could surge higher over the next few months as the new CEO, Mary Barra, makes changes in the company.
This article was originally posted on FX Empire