GM Just Got a Lofty Price Target Bump From UBS

General Motors shares were surging on Tuesday to their highest intra-day price since August of last year after UBS said GM is “fully back on track and likely enjoys strong momentum well into 2021.”

UBS analyst Patrick Hummel has cited a re-rating by investors on the automaker to as an “aggressive” electric vehicle story is likely during the next one to two years.

Shares of GM were up over 6% in early afternoon trading to $41.59 per share as Wall Street digested the analyst’s comments. The stock reached a new 52-week high on Tuesday for a second consecutive day after UBS increased its 12-month price target for the automaker’s stock to $50 a share, up from $34.

Hummel said GM is “fully back on track and likely enjoys strong momentum well into 2021,” including its electric vehicle plans. Investors will start to see GM as more of an “aggressive” electric vehicle company over the next year or two, instead of a slow-growth manufacturer like the rest of the Detroit carmakers, he said.

“With a focus on crystallizing value of its EV strategy … GM will likely get more credit for being a relative winner in the transition,” Hummel wrote in an investor note late-Monday.

GM’s majority-owned autonomous vehicle subsidiary Cruise, also announced a pilot delivery partnership Tuesday morning with Walmart

The tie-up includes a small fleet of autonomous vehicles delivering groceries and other items to customers near Scottsdale, Arizona. The pilot project will kick off in early 2021.

“You’ve seen us test drive with self-driving cars in the past, and we’re continuing to learn a lot about how they can shape the future of retail,” said Tom Ward, SVP of customer product at Walmart, in a blog post. “We’re excited to add Cruise to our lineup of autonomous vehicle pilots as we continue to chart a whole new roadmap for retail.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.