General Motors stock rises 3%: why the stock is a top pick for this analyst

General Motors GM shares rose about 3% on Monday after Jefferies upgraded the automaker to Buy from Hold and raised its price target to $99 from $90, citing growing confidence in the company's long-term earnings and cash flow prospects.

The brokerage increased its earnings estimates for 2026 through 2028 by about 6% after GM's second-quarter results reinforced expectations that profitability and free cash flow will continue to improve through 2027.

Jefferies expects General Motors to 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 firm also pointed to improving warranty performance, resilient vehicle pricing, lower electric vehicle restructuring costs and the company's strong North American truck business as factors that could support further earnings upgrades.

Jefferies added that GM's valuation remains attractive at roughly five times expected 2027 earnings, while continued share repurchases provide additional support for shareholders.

Shares climbed to about $86.10 during Monday trading, outperforming the broader market.

Ford also upgraded while Stellantis faces downgrade

Jefferies also upgraded Ford Motor 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 said both General Motors and Ford are positioned to deliver consistent profits in North America's relatively protected automotive market.

The positive outlook for the two Detroit automakers contrasted sharply with Stellantis.

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.

The brokerage cited increasing competition from Chinese automakers, labor pressures and the growing impact of artificial intelligence-powered robotaxis as challenges weighing on the company.

Stellantis is also undergoing a turnaround under Chief Executive 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 US dealer inventories and refresh its product lineup.

Wall Street remains most optimistic on General Motors

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 among the group, with only about 29% of analysts assigning a Buy rating.

The stock's average analyst price target stands at 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.