Shares of General Motors (GM) - Get Report continue to jolt higher 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 EVs and flying cars.
GM shares gained for a second day on Wednesday, rising to record highs, 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.
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.