General Motors announced on Friday that it has reached an agreement with labor union Unifor and will invest almost $800 million to transform its CAMI manufacturing plant in Ontario into Canada’s first large-scale electric vehicles manufacturing plant.
Last week, General Motors (GM) launched its BrightDrop business, which will offer customers an ecosystem of connected and electrified products and services designed to improve the delivery of goods and services.
BrightDrop will develop the EV600, an electric light commercial vehicle, which GM hopes will be ready for delivery by late 2021.
The CAMI investment is the latest in a long line of recent ventures by GM into Canada. The CAMI plant will shift over the next two years from current production of the Chevrolet Equinox to BrightDrop EV600 production.
Argus Research analyst Bill Selesky upgraded his rating on GM from Hold to Buy three days ago and set a price target of $56. This implies upside potential of around 12% from current levels.
Selesky said that GM continues to expand into electric and autonomous vehicles and it benefits from “high margins” in North America as well as “solid cash flow and a strong balance sheet.”
Consensus among analysts is a Strong Buy based on 13 Buys and 1 Hold. The average price target of $53.50 suggests upside potential of around 7% over the next 12 months.
GM scores a perfect 10 from Tipranks’ Smart Score tool, indicating that it has a strong chance of beating market expectations.