01:11 PM EDT, 07/22/2024 (MT Newswires) -- General Motors ( GM ) is poised for a strong Q2 performance, but a significant H2 slowdown is expected, RBC Capital Markets said in a note emailed Monday.

RBC estimates Q2 earnings of $2.72 per share and automotive revenue of $41.19 billion.

The automaker is expecting to sell 200,000 to 250,000 battery electric vehicles this year, potentially implying a margin headwind in H2. If GM decides to loosen its BEV target, there could be a guide increase when the company releases its Q2 results on Tuesday, RBC analysts said.

"Less BEV sales could mean less margin pressure and GM could be more likely to raise its 2024 guidance as a result," RBC said.

RBC has an outperform rating and a $58 price target on GM's stock.

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