Ford NYSE:F and General Motors NYSE:GM shares rose on Monday after Jefferies upgraded both automakers to Buy from Hold, citing improving U.S. auto market conditions, stronger capital allocation and easing cost pressures.
Jefferies raised its price target on Ford to $17.50 from $14.50, saying the company's second-quarter results could represent a low point for margins before improving. The brokerage expects Ford may increase its full-year guidance, supported by resilient U.S. demand, lower warranty expenses and a more disciplined electric vehicle strategy. It also lifted its 2026 adjusted EBIT forecast to $10.3 billion.
For General Motors, Jefferies increased its price target to $99 from $90 after the company's recent quarterly results reinforced confidence in improving profitability and free cash flow. The firm expects GM to generate more than $10 billion in annual free cash flow beginning in 2027, helped by new truck launches, operating efficiencies and growth in digital services.
Jefferies also raised its earnings estimates for General Motors through 2028, saying improving warranty performance, resilient pricing and lower EV-related costs could support additional earnings growth.