As previously reported, Evercore ISI analyst George Galliers upgraded General Motors (GM) to Outperform from In Line after SoftBank's (SFTBF) Vision Fund agreed to invest in the company's Cruise autonomous driving unit in a deal that values the unit at $11.5B.
Galliers said he had been assigning no value to the Cruise assets before the announcement. Under his new sum-of-the-parts valuation, Galliers applies a 6.0x multiple on GM's core, attributes a value of about $8 per share for the Cruise assets and about 60c per share for GM's stake in Lyft before applying a 25% discount to both of the latter.
He raised his price target on GM shares to $50 from $47.
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