General Motors Company (NYSE: GM) has recalled around 485,000 vehicles in the U.S. due to a defect in the third-row seat belt buckle, StreetInsider.com reported, citing the National Highway Traffic Safety Administration (NHTSA).
The issue might impact the working of the seat belt’s harness, thus not restraining the passenger properly in the event of a crash.
The recall includes GMC Yukon XL, GMC Yukon, Chevrolet Tahoe, Chevrolet Suburban, Cadillac Escalade ESV, and Cadillac Escalade vehicles manufactured between 2021 and 2022.
The Michigan-based automaker said that the plant operators of its seatbelt manufacturer “may have not properly followed manufacturing processes and inadvertently missed the rivet forming operation” while assembling the seat belt buckle.
Is GM a Good Stock to Buy?
GM stock has a Moderate Buy consensus rating on TipRanks, which is based on 11 Buys, three Holds, and one Sell. GM’s average price forecast of $48.07 implies upside potential of 23.3%.
Analysts’ cautious stand on the company follows the release of mixed second-quarter results last month. While revenues grew 4.7% year-over-year to $35.76 billion, adjusted earnings came in at $1.14 per share, compared to $1.97 per share in the previous year.
After the results were announced, Benchmark Co. analyst Michael Ward lowered the price target on General Motors to $60 (58.5% upside potential) from $75 and reiterated a Buy rating. The analyst said that he has cut the company’s 2023 earnings estimate “to reflect higher interest costs at GM Financial.”
Meanwhile, TipRanks’ Website Traffic Tool also shows a modest increase in the footfall to the company’s website in the month of July. According to the tool, GM’s website traffic registered a 1.4% rise in global visits in July, compared to June. Website visits on the desktop grew 9.4% month-on-month, but the traffic on the company’s mobile app remained almost flat. Learn how Website Traffic can help you research your favorite stocks.
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