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General Motors Extends Gains as 'Electrification' Sparks Upgrade

General Motors extends gains after Nomura upgrades the carmaker to buy and nearly triples its price target following the company's electrifying CES reveals.

Shares of General Motors  (GM) - Get General Motors Company Report extended gains on Wednesday after Nomura Securities upgraded the carmaker to buy from neutral and nearly tripled its one-year price target following the company's electrifying debut of future electric vehicles and flying cars.

GM shares were up 2.4% at $48.97in trading on Wednesday after Nomura analyst Anindya Das upgraded the Detroit-based automaker and set a price target of $60, up from $27, amid what the analyst described as GM's progress of automotive powertrain electrification in the U.S. and China.

While costly, GM's strategy to restructure its North American operations, vertically integrate battery production, and set itself on a path to form an alliance with Honda to cut procurement and costs should help the company "absorb the hit" from electrification relatively better than its U.S. peers, Das told investors in a research note.

Shares of GM jolted upward on Tuesday, hitting a record high of $47.48, after the company unveiled a host of new electric vehicles at this year's CES, including its first electric cargo delivery van, an air taxi that runs on electric power and an all-electric Hummer.

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GM CEO Mary Barra announced that GM will now sell electric delivery vans in a new business unit known as BrightDrop, which reimagines commercial delivery and logistics for an all-electric future of smart connected products and software-enabled services. FedEx (FDX) - Get Report will be its first customer and BrightDrop's first product will be an electric pallet called EP1 that will be available early next year.

Its second product, an electric light commercial vehicle called the EV600 with a range of up to 250 miles, will be available for order in early 2022.

Barra also unveiled Cadillac’s portfolio of EV vehicles named Lyriq and Celestiq as well as a Cadillac-branded drone-like aircraft that runs on electric power and a zero-emissions Hummer truck, telling participants that electrification "... will be a catalyst for a range of experiences."

Shares of GM have gained more than 50% over the past three months as the company has touted an all-electric future in a bid to become a legitimate rival to EV leader Tesla (TSLA) - Get Report