Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) have both been upgraded to ‘Buy’ by Jefferies analysts, who pointed to improving earnings prospects, stronger free cash flow generation and progress on several operational challenges.
For Ford, Jefferies upgraded the stock ahead of second-quarter earnings, calling the period a potential margin trough as production normalizes following disruptions and the company benefits from improved capital allocation
The analysts raised their price target to $17.50, noting that Ford’s valuation gap with GM has narrowed. Shares are currently trading at about $14, up 10% so far this year. Jefferies expects Ford’s adjusted EBIT to reach $10.3 billion in 2026, near the upper end of the company’s guided range of $8.5 billion to $10.5 billion.
The analysts also raised their adjusted free cash flow estimate to about $4 billion, supported by earnings improvements, working capital benefits and lower supplier EV compensation costs. The analysts highlighted progress across several areas, including Ford’s universal EV platform strategy, battery energy storage system investment, warranty improvements and efforts to reduce its European asset footprint. Jefferies expects Ford’s Blue business to improve in 2027, helping earnings recover after a challenging period.