General Motors (NYSE: GM) shares rose approximately 3% on Monday after Jefferies upgraded the automaker from Hold to Buy and lifted its price target to $99 from $90. The brokerage cited growing confidence in GM's long-term earnings and cash flow trajectory.
Jefferies increased its earnings estimates for 2026 through 2028 by roughly 6% following GM's second-quarter results, which reinforced expectations that profitability and free cash flow will continue to improve through 2027. The firm projects GM will generate more than $10 billion in annual free cash flow from 2027, supported by new truck launches, operational efficiency gains, and rising contributions from digital services.
The analyst also highlighted improving warranty performance, resilient vehicle pricing, lower electric vehicle restructuring costs, and the strength of GM's North American truck business as factors that could drive further earnings upgrades. GM's valuation remains attractive at roughly five times expected 2027 earnings, while ongoing share repurchases provide additional support for shareholders.
Shares climbed to approximately $86.10 during Monday trading, outperforming the broader market. The move comes amid a mixed landscape for Detroit automakers, with Ford also receiving an upgrade while Stellantis faced a downgrade.
Ford upgraded, Stellantis downgraded
Jefferies also upgraded Ford Motor (NYSE: F) to Buy from Hold, increasing its price target to $17.50 from $14.50. Ford shares gained about 2.4% on Monday as investors looked ahead to the automaker's earnings report later this week. Jefferies said Ford could raise its full-year outlook, with the company currently expecting approximately $9.5 billion in operating profit for 2026, compared with $6.8 billion earned in 2025.
The brokerage noted that both GM and Ford are positioned to deliver consistent profits in North America's relatively protected automotive market. This positive outlook contrasted sharply with Stellantis (NYSE: STLA). Piper Sandler downgraded Stellantis to Sell from Hold and slashed its price target to $4 from $14. Shares of the Chrysler parent fell about 0.5% to $5.66 during Monday trading.
Piper Sandler cited increasing competition from Chinese automakers, labor pressures, and the growing impact of AI-powered robotaxis as challenges weighing on the company. Stellantis is also undergoing a turnaround under CEO Antonio Filosa, who succeeded Carlos Tavares in 2025. After generating roughly $25 billion in operating profit in 2023, the automaker is expected to earn less than $4 billion in 2026 as it works to reduce U.S. dealer inventories and refresh its product lineup.
Wall Street remains most optimistic on GM
Among the Detroit Three, General Motors continues to enjoy the strongest support from Wall Street analysts. Nearly 80% of analysts covering GM rate the shares Buy, with an average price target of about $101. By comparison, roughly 30% of analysts recommend buying Ford stock, which carries an average price target of around $15. Stellantis has the weakest sentiment, with only about 29% of analysts assigning a Buy rating and an average price target of approximately $7.40.
The three automakers have also delivered sharply different stock market performances over the past year. Heading into Monday's trading session, GM shares had gained 55% over the previous 12 months, significantly outperforming Ford, which advanced 27%. Stellantis has moved in the opposite direction, with its shares falling 39% over the same period.
For investors tracking the broader automotive sector, recent analyst moves on other names like Rivian's upgrade and quantum computing plays highlight the varied opportunities across the market. Meanwhile, Alphabet's rebound amid AI spending shows how tech and auto sectors are increasingly intertwined.
This article is for informational purposes only and does not constitute financial advice.
