Jefferies' upgrade of General Motors and Ford Motor reflects a more optimistic view on their financial performance. For General Motors, the price target was raised to $99 from $90, suggesting a nearly 20% upside from its recent closing price.
This upgrade follows GM's strong second-quarter results, which exceeded earnings and revenue expectations, along with an optimistic guidance increase for 2026. Analyst Philippe Houchois noted that GM's pricing strategy and cost management efforts could lead to substantial savings over time. Meanwhile, Ford's price target was increased to $17.50 from $14.50, indicating a potential 22% gain.
Houchois believes Ford is poised for recovery, with the second quarter marking a low point in production volumes. The resumption of operations at Novelis, a key aluminum supplier for Ford's F-150, is expected to help normalize production levels.
Despite a generally neutral stance among analysts on Ford, the overall market conditions appear favorable for both automakers, with GM receiving stronger buy ratings compared to Ford