Four Reasons Why Risk/Reward Remains Compelling Here; Top Pick (PT to $132)

Research evidence excerpt

Four Reasons Why Risk/Reward Remains Compelling Here; Top Pick (PT to $132)

TD Cowen General Motors Company

Global Research July 21, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

GM isn't your typical "legacy" automaker for three reasons: (1) The majority of GM's earnings ■ Emission regulation finalization

come from a unique Defensive Franchise (NA Pickup Trucks & Large SUVs) that have long ■ Continued Defense wins

contributed to GM's fundamental outperformance vs. global auto peers. Many of today's ■ Full-size truck launch

perceived global auto threats don't apply as meaningfully to these franchises. (2) Despite ■ Further tariff clarity

capacity realignments, GM remains committed to EVs, which we believe can be accretive ■ Additional buybacks

thanks to unique regional and segmentation comparables in EV-leading US counties. (3) We see

ample levers to drive further earnings growth which, with continued aggressive share buybacks,

should allow the stock to continue grinding higher. We see room for both upward consensus

revisions and multiple expansion.

Base Case Assumptions Upside Scenario Downside Scenario

■ US auto demand resilience ■ US auto pricing more resilient ■ Geopolitical / trade developments

■ No major lasting regulatory/tariff ■ Software/AV improves faster than ■ Unforeseen supply chain disruptions

disruptions expected ■ Cost execution setbacks (warranty)

■ Continued software/AV progress ■ EV accretion thesis plays out

Price Performance Company Description

GM designs, builds and sells vehicles, automotive parts and various services and subscriptions.

$100

The operates two automotive segments, GM North America (GMNA) And GM International (GMI).

GM sells vehicles under the Chevrolet, Buick, GMC and Cadillac brands. The company also