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Investing.com -- Ford is better positioned than General Motors to handle shifting U.S. rules on emissions and trade, Jefferies analysts said as it upgraded the automaker.
The brokerage lifted Ford to Hold from Underperform, saying the company has more flexibility to manage both potential tariff increases and tightening CO2 standards thanks to its wider mix of internal combustion, hybrid and electric models.
It raised its price target to $12 from $9.
Jefferies said Ford is likely to benefit if regulators ease greenhouse gas rules or extend production incentives, while its strong compliance record means it faces fewer penalties than peers.
Looser limits on CO2-heavy models such as pickups and SUVs could also lift earnings from Ford’s traditional “Blue” combustion business, which Jefferies now expects to deliver better margins.
Whereas General Motors was kept at Hold, with Jefferies arguing the company is more exposed to tariffs and has less room to adjust its line-up.
GM already enjoys a dominant position in large pickups and SUVs but continues to lose money on electric vehicles and may struggle to cut those losses quickly, it said.
Ford has previously outlined a multibillion-dollar opportunity from relaxed emissions rules, and Jefferies expects management to hint at strategy changes later this year, including a slower electric rollout or greater focus on hybrids.
The analysts raised Ford’s 2026-27 earnings forecasts by about 4%, citing stronger profit contribution from combustion models.
But they warned lingering warranty costs and European restructuring remain a drag and the stock still looks expensive relative to cash flow.
“Operating drivers look more supportive but cannot offset overhangs,” Jefferies wrote, while calling Stellantis its preferred U.S.-listed auto stock.