UBS Raises Price Target for General Motors Due to Strong Digital Business Growth
UBS has raised its price target for General Motors (NYSE:GM) from $102 to $114, citing strong growth in the automaker's digital business. The bank forecasts GM’s total digital revenue will grow from $3.2 billion in 2026 to $9.6 billion by 2036 at a compound annual growth rate of about 11.5%. This is driven primarily by recurring, high-margin subscriptions through services like OnStar and Super Cruise. UBS estimates that digital revenue will contribute significantly to GM’s earnings before interest and taxes (EBIT), growing from $2.7 billion in 2026—already 18% of total EBIT—to $7.8 billion by 2036. The bank also expects the deferred digital revenue balance to grow from about $7.5 billion in 2026 to $15 billion over the next decade, with subscription-based services like Super Cruise expected to expand rapidly. The investment firm has adjusted its valuation metrics accordingly, raising GM’s projected price-to-earnings multiple for 2027 to approximately 7x from 6.5x.
Tickers: $GM
Topics: automotive industry digital business subscription revenue UBS analysis