An Unlikely Growth Stock: Analyst Thinks GM Could Hit $134 In The Future

Taking a holistic second look at General Motors Company (NYSE: GM), Citigroup said the company could unlock substantially more value, including possibly paving a path toward its prior long-term, high-end upside potential case of $134.

As such, Citi has a Buy rating and a 12-month price target of $53 for the shares of General Motors.

Analyst Itay Michaeli pointed out that there are doubts over whether the recent run-up in the company's stock reflected short-term momentum into some future Investor Day/Event or the start of lasting re-rating. The analyst thinks the rally could be due to both.

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After hitting a low of $31.74 on May 17, the stock has added about 41 percent to date. The upside was in part catalyzed by strong monthly sales results for August and September.

Citi believes General Motors' Autonomous Vehicle position supports the notion that the GM problem was one of perception, and not fundamentals. The firm thinks there are plenty of reasons to take a second look at GM.

The firm currently does not see GM as a mere "Auto 1.0 finds 2.0 opportunities" story but rather as a very unique Auto core, namely pickups, that is complemented by a leading Robo Taxi AV position.