Jefferies analysts have upgraded Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) to 'Buy' ratings, citing improved earnings visibility. The investment bank raised its price target for Ford to $17.50 and for General Motors to $99.

Ford shares are currently trading at about $14, up 10% year-to-date, while General Motors shares are around $86. Jefferies' price targets imply potential upside of about 25% for Ford and 15% for GM.

For Ford, Jefferies expects adjusted EBIT of $10.3 billion in 2026, within the company's guided range of $8.5 billion to $10.5 billion. The analysts raised their adjusted free cash flow estimate for Ford to about $4 billion and project second-quarter group adjusted EBIT of $2.5 billion. They consider the second quarter a potential margin trough as production normalizes, but expect Ford's Blue business to improve in 2027.

Jefferies also highlighted Ford's universal EV platform strategy, battery energy storage system investment, warranty improvements, and efforts to reduce its European asset footprint. The analysts expect Ford's EV losses to moderate and noted that the valuation gap with General Motors has narrowed.

For General Motors, Jefferies expects the automaker to generate more than $10 billion in annual real free cash flow from 2027 onward, supported by new vehicle launches, efficiency gains, and greater diversification. The analysts raised their 2026-2028 estimates for GM by about 6% and project 2026 adjusted EBIT of $15.8 billion and 2027 adjusted EBIT of $17.4 billion.

Jefferies highlighted upcoming Silverado and Sierra truck launches, improved vehicle content including Super Cruise technology, and potential growth from digital services for General Motors. North American operations are expected to remain the key earnings driver. The analysts noted that much of GM's EV-related cash costs have already been incurred, reducing future pressure, and that the company has recorded $500 million of warranty expense improvement in the first half of the year.

Jefferies wrote that both companies are positioned for improved earnings visibility and noted that a valuation re-rating could provide additional upside, although it is not required to support its price targets.