FINWIRES · TerminalLIVE
FINWIRES

General Motors Delivered Strong Q1 Results Despite Macroeconomic Headwinds, Wedbush Says

By

-- General Motors' (GM) Q1 results show that the company managed to start the year off strong despite facing macro headwinds, Wedbush said in a note Wednesday.

The company's Q1 results saw a "slight top-line beat with a strong bottom-line beat" as it is still navigating a more challenging electric vehicle scenario, the note said, adding GM is moving to "higher-margin revenue streams to drive long-term cash flow generation."

The company is also benefitting from the US Supreme Court ruling on tariffs, the note said.

Wedbush highlighted the fact that GM's digital services segment is achieving incremental momentum with deferred revenue reaching $5.8 billion, an increase of more than 50% year on year, and recognized revenue of $750 million, up 20% year on year.

The company keeps "adding more subscribers to its digital services revenue stream with a monthly average revenue per subscriber of ~$20," the note said.

Meanwhile, the company said that the Iran war has increased its costs, but Wedbush believes that GM will be able to "navigate a more difficult macro backdrop by offsetting cost pressures through spend reduction across other areas of the business."

Wedbush kept GM's outperform rating and $95 price target.

Price: $76.25, Change: $-2.70, Percent Change: -3.42%

Related Articles

Research

Research Alert: CFRA Maintains Sell Rating On Shares Of Illinois Tool Works Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We trim our 12-month target to $235 from $250, valuing shares at 19.5x our 2027 EPS outlook of $12.04 (adjusted from $12.03; 2026 EPS view revised to $11.26 from $11.25), a discount to ITW's long-term multiple average given a slowing rate of growth. Anemic growth and softness in several of ITW's segments were reflected in Q1 results. Organic sales grew just 0.4%, with a 1% headwind from product pruning activity and declines in four out of seven segments: Food Equipment -3%, Automotive OEM -1%, Construction Products -1%, and Specialty Products -5%. More positively, enterprise initiatives continue to drive margin gains, with pricing fending off inflationary pressures well. While management noted outperformance across challenged markets in Q1, we still view ITW as lagging behind other industrial peers that have a more concentrated exposure to secular growth opportunities. We reiterate our Sell recommendation on shares.

$ITW
Research

Research Alert: CFRA Lifts Rating On Shares Of Parker-hannifin To Buy From Hold

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Following the recent pullback in shares and encouraging Q3 FY 26 (Jun.) results, we lift our 12-month target by $50 to $1,050 and upgrade our view on shares to Buy from Hold. We value shares at 30.5x our FY 27 EPS outlook of $34.42 (up from $33.35; FY 26 EPS view revised to $31.20 from $30.90), above the company's long-term multiple average given an accelerated growth trajectory within aerospace markets. PH's Diversified Industrial business is beginning to inflect into recovery, with orders above 7% in NA signaling a cyclical uptrend. Q3 structural improvements in margins inform our upgraded outlook for earnings in FY 26-FY 27, with negative mix impacts from outsized growth in lower-margin OEM products being more than offset by strong operational execution. With greater participation in growth across the portfolio, PH once again deploying capital to synergistic M&A, and margin expansion still in full swing, we believe that shares are positioned to outperform over the next 12 months.

$PH
Research

Research Alert: CFRA Reiterates Buy Opinion On Shares Of Chipotle Mexican Grill Inc

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our 12-month target price at $44, 35x our 2026 EPS estimate, a discount to shares' 50x five-year average, reflecting a lower comparable sales growth profile. We raise our 2026 EPS estimate to $1.26 (from $1.25) and lower 2027's to $1.45 (from $1.46). Following encouraging Q1 results, we reiterate our Buy opinion. CMG posted comparable sales growth of 0.5%, including transaction growth of 0.6%, which highlights the company's focus on value perception with U.S. consumers. We are encouraged by comparable sales growth stabilization following declines in 2025, suggesting the company's structural growth profile remains intact. Further evidence of structural growth catalysts includes new store growth (+49 in Q1) and a pipeline of limited-time offerings and incremental add-ons (such as its cilantro lime sauce) gaining traction and boosting revenue without increasing menu prices. Though this strategy will pressure restaurant margins (-250 bps in Q1), we think this is beneficial for long-term growth.

$CMG