Jefferies analyst Philippe Houchois upgraded General Motors from Hold to Buy. The firm raised its price target for the automaker to $99 from $90.
The upgrade follows strong second-quarter results where GM beat earnings estimates. The company also increased its full-year guidance.
Houchois expects GM's market position to strengthen through 2027. Growth will be driven by new truck launches, production efficiencies, and diversification.
Jefferies projects GM will generate more than $10 billion in free cash flow by 2027. The firm raised its earnings per share estimates for the 2026 through 2028 period.
Lower warranty costs and a favorable U.S. policy environment further reduced earnings risks. Jefferies also upgraded competitor Ford to Buy, citing a more supportive environment for the broader industry.