General Motors (GM) is expected to see improved results in 2027, supported by stronger pricing and mix from next-generation full-size pickups, higher output on full-size SUVs following the shift of Escalade production to Orion, and continued warranty improvements, UBS said in a note emailed Wednesday.

The gains are expected to be partially offset by commodity costs and the non-repeat of IEPPA recovery benefits, the firm said.

UBS sees digital services opportunity as a more material contributor beyond 2027, according to the note.

UBS said it estimates Q3 earnings before interest and taxes at about $4.4 billion with volumes marginally higher sequentially.

UBS adjusted its 2026 and 2027 EPS estimates to $13.90 and $15.67, respectively, from $13.34 and $15.72, reflecting an increased buyback assumption on strong expected free cash flow, while its 2027 EBIT forecast was trimmed modestly.

UBS maintained its buy rating on GM stock with a $102 price target.

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