General Motors Company (GM.US) stock price "rollercoaster" after performance results UBS Group AG: Market oversold but prospects not optimistic

After General Motors Company (GM.US) announced its second-quarter financial report on Tuesday, the stock price fell by 8.1%. UBS Group AG believes that the market sell-off was excessive, although the company's outlook is not optimistic. UBS Group AG reiterated a "neutral" rating for General Motors Company with a target price of $56. UBS Group AG sees an opportunity to buy General Motors Company stock during the market sell-off, as well as technical support from the company's stock buyback program. Additionally, trade agreements between the US and South Korea and Mexico may boost General Motors Company's stock. However, UBS Group AG stated that it is unlikely that there will be significant positive revisions to General Motors Company's earnings forecast for 2025/26. The company's guidance indicates that pretax profits for the second half of 2025 are expected to be around $4.7 billion, in line with market expectations but a 28% decrease from the first half of the year. The main reasons for the significant profit decline in the second half of the year include the impact of tariffs, declining sales, and increased expenses related to the next generation full-size pickup. Looking ahead to 2026, tariffs may continue to impact annual performance, although the impact is expected to lessen compared to 2025. UBS Group AG predicts that General Motors Company's pretax profits for 2026 will be close to $12 billion, lower than the bank's previous expectations but better than the market's general expectations. As of the time of writing, General Motors Company's stock price was down by 0.45% in pre-market trading, at $52.89. The stock price has been experiencing volatile fluctuations after the financial report was announced, with a 8.1% decrease on Tuesday followed by a 8.7% increase on Wednesday.