Crypto World

General Motors (GM) Stock Gets Bullish Upgrade as Analyst Sees Value After Recent Decline

Published

4 weeks ago

25 March 2026

NewsAdmin

Key Highlights

GM receives Outperform rating from Wolfe Research, upgraded from Peer Perform, with price objective set at $96
Auto sector stocks have declined approximately 8% in the last three-week period amid broader economic uncertainty
Analyst identifies 2027 catalysts including full-size truck refresh projected to add ~$1.7B, warranty expense reduction, and tariff relief
Earnings projections from Wolfe show GM reaching $12.37 per share in 2026, climbing to $16.03 in 2027
Ford faces potential challenges with Wolfe warning of possible $1.5B EBIT pressure in 2027 from inventory concerns

On Wednesday, Wolfe Research elevated its rating on General Motors to Outperform, establishing a $96 price objective for the automaker’s shares. This marks an upgrade from the firm’s previous Peer Perform designation.

GM Stock Card
General Motors Company, GM

The rating adjustment arrives during a challenging period for automotive equities, which have experienced widespread selling pressure throughout the past three weeks. Sector stocks have retreated roughly 8% on average as macroeconomic headwinds sparked investor caution.

In his research note, analyst Emmanuel Rosner observed that automotive stocks typically rank “among the main targets when macro concerns escalate.” However, he emphasized that historical patterns demonstrate these downturns “can also present interesting buying opportunities.”
Following revisions to production forecasts and commodity price projections, Wolfe concluded that the “risk/reward profile now appears more attractive for select names.” General Motors emerged as the firm’s top pick in this reassessment.

The investment firm contends that market participants are overlooking the magnitude of GM’s prospective gains approaching 2027. A significant factor involves the forthcoming full-size pickup truck redesign, which Wolfe projects could contribute approximately $1.7 billion in value.

Additional positive factors include anticipated declines in warranty-related expenses. Beyond that, Wolfe anticipates a lighter net tariff impact and ongoing enhancements in electric vehicle profitability as supplementary growth drivers.

Wolfe’s financial models project GM will deliver earnings of $12.37 per share during 2026, before advancing to $16.03 in 2027. The firm believes the 2027 earnings potential represents where the market is significantly undervaluing the shares.

BorgWarner and Aptiv Receive Positive Commentary

Wolfe simultaneously elevated BorgWarner to Outperform status in the same research publication. The firm highlighted the manufacturer’s “Power Gen opportunity,” estimating it could contribute approximately $2 billion in sales once fully developed.

Rosner noted that the stock’s recent decline suggests this growth potential remains unrecognized in current valuations. From Wolfe’s perspective, this creates an appealing investment opportunity.

Regarding Aptiv, Rosner maintained his optimistic outlook in advance of the company’s upcoming corporate separation. He characterized the current environment as “a compelling entry point,” emphasizing robust operational fundamentals in both entities that will emerge from the division.

Ford Faces Cautionary Assessment

Not all automotive manufacturers received favorable commentary. Wolfe identified execution challenges at Ford, noting uncertainty surrounding the company’s 2026 production plans.

The research firm cautioned that elevated year-end inventory levels might generate a $1.5 billion EBIT headwind extending into 2027. Rosner opted not to upgrade Ford’s rating.

The Wolfe analysis demonstrates a discriminating sector strategy rather than widespread optimism. General Motors’ updated truck portfolio and expense management improvements formed the foundation of the upgrade thesis.

Wolfe’s 2027 earnings estimate of $16.03 per share for GM substantially exceeds current analyst consensus, indicating the firm perceives considerable appreciation potential should these favorable developments unfold as anticipated.

Source link

Crypto World

LayerZero Says Kelp Setup Caused Exploit, as Aave Loss Questions Mount

Published

4 minutes ago

20 April 2026

NewsAdmin

LayerZero Says Kelp Setup Caused Exploit, as Aave Loss Questions Mount

Interoperability protocol LayerZero claims that an inadequate setup tied to Kelp’s decentralized verifier network (DVN) enabled malicious actors to steal $290 million from Kelp DAO, adding that preliminary signs point to North Korea-linked threat actors.

An attacker drained about 116,500 Restaked ETH (rsETH), worth as much as $293 million at the time, from Kelp DAO’s LayerZero-powered rsETH bridge on Saturday.

LayerZero said Monday that the exploit stemmed from a single point of failure in Kelp’s setup, which relied on a single LayerZero DVN as the only verified path, despite LayerZero previously advising them against this.

“LayerZero and other external parties previously communicated best practices around DVN diversification to KelpDAO. Despite these recommendations, KelpDAO chose to utilize a 1/1 DVN configuration.”

In practice, that meant Kelp relied on a single verification path for cross-chain messages rather than requiring multiple independent checks.

The exploit quickly shifted attention from the technical cause to the question of who should absorb the losses, while the fallout spread into Aave, where the attacker used rsETH as collateral to borrow real liquidity.

Aave’s total value locked (TVL) had fallen by about $8.9 billion to $17.5 billion at the time of writing after the exploiter used the stolen funds to borrow on Aave, leaving about $195 million in “bad debt,” triggering withdrawals on the lending protocol.

LayerZero said Kelp’s rsETH bridge relied solely on the LayerZero Labs DVN, and argued that the incident reflected an unsafe application configuration rather than a compromise of LayerZero itself. The company said it is now urging all applications using 1/1 DVN setups to migrate to multi-DVN configurations and will stop signing or attesting messages for apps that retain the single verifier design.

Losses spark blame fight after $290 million Kelp exploit

With no recovery or compensation plan yet announced, users and market observers spent Monday debating whether losses should sit with Kelp DAO, LayerZero, Aave or rsETH holders themselves.

Yishi Wang, founder and CEO of open-source hardware wallet OneKey, said that the best path forward was to negotiate with the hacker, offer a 10% to 15% bounty, and get the bulk of the funds back.

“If negotiations fail, LayerZero’s ecosystem fund should foot the bulk of the bill—it’s got the deepest pockets and the most long-term skin in the game,” wrote the founder in a Monday X post, adding that Kelp DAO is “broke” and could make it up with tokens and future revenue, or consider selling the project.

Analytics platform DeFiLlama’s pseudonymous founder, 0xngmi, outlined three solutions, including the option to “socialize” losses among all users, “rug rsETH holders on L2s,” or try to return holder balances to a pre-hack snapshot, which would be “very hard to do,” he wrote in a Monday X post.

Cointelegraph reached out to Aave for comment, but had not received a response by publication.

Exploit raises Aave liquidation risks

Investor concerns about the Kelp exploit have significantly reduced Ether (ETH) liquidity on Aave, the lending protocol’s core collateral asset.

This low liquidity presents a “critical safety risk where liquidations of ETH collateral cannot take place while markets are at 100% utilization,” said MoneySupply, the pseudonymous head of strategy at Aave competitor lending protocol Spark, in a Saturday X post.

“With current illiquidity conditions on Aave, a 15-20% ETHUSD price drop could cause significant bad debt accumulation (on top of any potential issues attributable to the direct rsETH exploit),” he said.