02:05 PM EDT, 04/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target to $44 from $38, based on a 2025 P/E of 5.2x, a justified discount to historic averages. We lower our 2024 EPS estimate to $8.80 from $8.90 but leave 2025's unchanged at $8.50. GM posted Q1 U.S. vehicle sales of 594,233 units (-1.5% Y/Y), well below the industry's expected Y/Y sales growth of 5.5% for Q1, according to Cox Automotive estimates. EVs acted as a drag on overall volumes, declining by 20.5% Y/Y in Q1. Notably, dealership inventories of GM vehicles hit 534,479 units at the end of March, up 17% from year-end 2023 levels, and the highest level since 2020. With inventories rising rapidly, we expect new vehicle prices to remain under pressure and incentives to continue increasing. Furthermore, Q1 results will reflect the company's first full quarter of significantly higher labor costs since the new UAW deal was reached in November. As the shares have appreciated materially since November and near-term comps remain difficult, we reiterate our Hold opinion on GM.