GM Analysts Say Buy the Dip as Stock Eyes Worst Week Since 2025

(Bloomberg) -- General Motors Co. stock is set to record its worst week in more than 20 months, but bullish Wall Street analysts are doubling down.

The carmaker's stock has fallen 8% through Thursday's close, putting it on pace for the largest weekly drop since January 2025, and analysts are saying investors should buy the dip.

On Tuesday, the company narrowed the top- and bottom-ends of this year's profit guidance range, and its Chief Executive Officer Mary Barra warned that GM faces "clear external headwinds," sending the stock down 6.8% in the worst session since July 2025.

"The bar was high," said StoneX analyst Mickey Legg. "It's a buying opportunity. Most of what spooked the market is timing rather than earnings power."

StoneX's Legg, who has a buy rating on GM, is not alone in his call. None of the analysts tracked by Bloomberg recommend selling the stock after Wells Fargo dropped coverage of the company amid an analyst departure last month. Still, GM shares are down year-to-date, declining 5.1% as the S&P 500 climbed 12%.

Analysts at BNP Paribas, Evercore ISI, and RBC Capital Markets echoed the call to buy the dip after Tuesday's earnings. BNP's James Picariello reiterated his buy-equivalent rating, citing GM's "severely discounted valuation" and unparalleled execution.

When GM last reported earnings in July, quarterly profit beat and management hiked its outlook. Shares rallied over the next few days to touch a record high.

But the stock has retreated since amid lofty oil and high costs, elevated interest rates, and weak consumer sentiment.

"The market has focused excessively on these near-term headwinds while overlooking the company's improving operating performance, margins, and cash generation." said Ivan Feinseth, chief investment officer at Tigress Financial Partners.