BofA Securities Adds Red-Hot Mega-Cap Tech Giant to the US 1 List

General Motors

This expanding car company could benefit from an improving economy and the return to work, and it is also a new member of the US 1 List. General Motors Co. (NYSE: GM) is the world’s largest automaker, with annual volume of almost 9 million units. It now relies on only four core brands in its key North American segment (Chevrolet, GMC, Buick and Cadillac).

GM also sells cars, trucks and crossovers to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. In addition, it offers connected safety, security and mobility solutions, as well as information technology services. The company, through its General Motors Financial Company subsidiary, provides automotive financing services.

The analysts are very positive on the forward strategy at the auto giant and noted this:

GM announced that Cruise has entered into a strategic agreement with Microsoft to advance commercialization of its autonomous vehicle fleet. Microsoft’s value-add to Cruise/GM partnership and AV development/deployment will be its cloud/edge computing platform Azure. Microsoft will contribute to a $2 billion equity investment in Cruise, bringing post-money valuation to $30 billion

The $72 BofA Securities price target on the venerable auto manufacturer is well above the $54.59 consensus figure. General Motors stock closed at $55.08 on Thursday.

The US 1 team has removed Twitter Inc. (NYSE: TWTR) and SVB Financial Group (NASDAQ: SVIB) from the portfolio. However, both stocks remain Buy rated.

It comes as somewhat of a surprise that the BofA Securities team is adding Alphabet now after such a massive run, yet they are not the only ones on Wall Street reiterating Buy ratings and raising price targets in front of the upcoming earnings. It may make sense just to nibble at the shares, buying partial positions now and waiting to see how the earnings reports come in.