GM
New roads, same old automaker?
General Motors is trying to do the classic car-company move: stop being just a car company. RBC Capital Markets says the automaker is “finding new roads” by leaning harder into businesses like OnStar, GM Defense, GM Insurance, and its partnership with Peak Energy.
Why Wall Street is suddenly more interested
Analyst Tom Narayan reiterated an Outperform rating and lifted his price target from $94 to $100. That came right after GM’s second-quarter results, which the note described as showing the company’s pricing power and cost control are still doing their jobs.
A few of the juicy bits:
- OnStar could top $3 billion in revenue in 2026, with roughly 70% gross margins.
- GM Defense may reach around $700 million in revenue, with a backlog that’s already building.
- GM Insurance is earlier-stage, but still seen as a strategically interesting side quest.
- The company also raised its adjusted EBIT guidance midpoint by $500 million to $14 billion to $16 billion.
The bigger story
This is the part investors care about: GM is trying to prove its future isn’t entirely tied to selling trucks and SUVs. If these non-legacy businesses keep scaling, they could become the kind of high-margin add-ons that make the whole story look a lot less cyclical.
Big picture: GM’s not just chasing cars anymore — it’s trying to build a diversified profit machine, and Wall Street seems willing to take the tour.