The outlooks for General Motors and Ford Motor are improving, according to Jefferies, and it’s time to get into the stocks. The bank upgraded both automakers to buy from hold. It also hiked its price target to $99 from $90 for General Motors, which implies nearly a 20% gain from Friday’s close. Driving the GM upgrade was the company’s second-quarter report , which included an earnings and revenue beat as well as a guidance raise for 2026, said analyst Philippe Houchois. “[Full-year’ pricing was raised to +0.5%, the high end of previous indications, even as it implies some weakening in [second half] to ensure low inventories ahead of [year-end] Truck launches,” Houchois wrote to clients in a note dated Sunday. “GM achieved meaningful progress on warranty ($500m in H1), with more expected in Q3 and a lesser extent Q4, while in previous meetings CFO [Paul] Jacobson also suggested that matching best peers could release $2-4bn of cost over time.” GM YTD mountain General Motors year-to-date. Houchois added that U.S. policies — despite concerns over the status of the USMCA trade agreement and oil prices — have put GM earnings on a less riskier path. Jefferies also raised its price target on Ford to $17.50 from $14.50, which indicates an almost 22% gain from Friday’s close. Huchois thinks Ford is on track to start building momentum again, with the second quarter set to mark a trough. “We see Q2 as a low point for volume with post-Novelis production set to normalize up,” Huchois wrote. Novelis, an aluminum supplier, restarted production last month at a New York facility — a plan that supplies Ford’s F-150 truck line — after two fires halted activity. “With US market conditions healthy, management could raise guidance at Q2.” Ford is set to deliver its earnings report after the bell on Tuesday. Analysts are generally more neutral on Ford. Of the 24 who cover the stock, 17 rate it a hold, per LSEG data. Two others have underperform or sell ratings, while five assigned a buy or strong buy designation. The Street is more bullish on GM. LSEG data shows 22 of 31 analysts rate the stock a buy or strong buy. Ford has gained 9.5% this year, and GM has risen 1.6% in that time.
