A Wall Street Firm Just Turned Bullish On Ford And GM. It Believes Gains Could Be As High As 22%
Jefferies has upgraded both Ford Motor and General Motors to “buy,” arguing that improving earnings trends and stronger operating performance have created more attractive opportunities for investors in the two Detroit automakers.
The investment bank raised its rating on both companies to “buy” from “hold,” while increasing its price target for General Motors to $99 from $90 and for Ford Motor to $17.50 from $14.50, CNBC reported Monday. The new targets imply upside of nearly 20% for GM and almost 22% for Ford based on Friday’s closing prices.
Jefferies analyst Philippe Houchois said GM’s stronger-than-expected second-quarter earnings and raised 2026 guidance supported the firm’s more positive view of the automaker. The company reported earnings and revenue that exceeded Wall Street expectations while increasing its outlook for the year, the outlet noted, citing Houchois’ research note to clients.
Houchois said GM also made progress reducing warranty-related costs, with about $500 million in savings during the first half of the year. He added that Chief Financial Officer Paul Jacobson had previously indicated that bringing warranty performance in line with leading competitors could unlock between $2 billion and $4 billion in additional savings over time.
The analyst also pointed to pricing trends, writing that GM raised its full-year pricing outlook to a 0.5% increase, the upper end of its previous guidance. Houchois said the outlook still allows for softer pricing during the second half of the year as the company maintains lower inventories ahead of upcoming truck launches.
Jefferies also said U.S. policy developments have reduced some of the risks facing GM’s earnings outlook despite continued uncertainty surrounding the United States-Mexico-Canada Agreement (USMCA) and oil prices.
Ford received a similarly positive assessment from Jefferies, which said the automaker is approaching an operational turning point after production disruptions earlier this year.
Houchois described the second quarter as a likely low point for Ford’s vehicle volumes, adding that production should normalize following the restart of Novelis’ aluminum manufacturing facility in New York. The plant supplies aluminum used in Ford’s F-150 pickup trucks and resumed operations last month after two fires temporarily halted production.
The analyst also said healthy U.S. auto market conditions could support improved business performance. Ford is scheduled to report second-quarter earnings after the market closes on Tuesday.
Wall Street sentiment remains divided on Ford despite the Jefferies upgrade. LSEG data, cited by CNBC, shows that 17 of the 24 analysts covering Ford currently rate the shares as “hold.” Five analysts recommend buying the stock, while two maintain underperform or sell ratings.
General Motors continues to receive stronger support from analysts. According to LSEG data, 22 of the 31 analysts covering GM rate the stock either “buy” or “strong buy.”
The upgrades follow a solid earnings season for U.S. automakers. Reuters reported last week that General Motors raised its full-year guidance after posting second-quarter results that exceeded analyst expectations, supported by resilient consumer demand and continued strength in its North American operations despite ongoing tariff-related costs.
Ford, meanwhile, has continued to navigate supply chain challenges during 2026. The production interruption linked to Novelis affected output of the F-150, one of the company’s most profitable vehicles. Reuters previously reported that Novelis resumed operations at its Oswego, New York, facility after repairs following the fires, allowing aluminum shipments to Ford to resume.
Both companies have outperformed broader expectations in different ways this year. Ford shares have risen 9.5% since the start of 2026, while GM stock has gained 1.6%, according to market data cited by CNBC.
