GM (General Motors) and Ford Motor Company (Ford) are once again in the spotlight as Wall Street analysts release new stock ratings and price targets. The latest analysis has sent GM’s stock soaring with predictions of massive gains, while Ford’s outlook remains much less optimistic.
GM’s Stock Could Double—Analysts Are Bullish
On March 7, 2025, TD Cowen analyst Itay Michaeli gave GM a strong “Buy” rating and set a price target of $105 per share—more than double its current trading price of $47.20. That’s an estimated 100% upside for investors.
So why is Wall Street so confident in GM? Analysts are pointing to several key factors:
- Stock buybacks: GM has been aggressively repurchasing its own shares, which helps boost stock value.
- Strong truck sales: The company’s pickup and SUV segments continue to perform well.
- Growing EV market: GM is making major strides in electric vehicles, positioning itself as a strong competitor in the industry.
Despite potential challenges like rising interest rates and new tariffs, analysts believe GM’s stock is undervalued and presents a great buying opportunity.
Right now, 63% of analysts covering GM rate it as a “Buy,” with an average price target of $62 per share.
Ford Faces a Tougher Road Ahead
Ford, on the other hand, isn’t getting the same level of enthusiasm from Wall Street.
Michaeli gave Ford a “Hold” rating and set a price target of just $10 per share only slightly above its recent closing price of $9.90. While Ford’s stock did rise 3% following the rating, it has still dropped 20% over the past year, significantly underperforming GM.
What’s holding Ford back?
- High warranty costs: The company has been dealing with costly vehicle repairs and recalls.
- Excess inventory: Too many unsold cars sitting at dealerships could hurt future earnings.
- Competitive pressure: The auto industry is rapidly shifting, and Ford is struggling to keep up in certain areas.
Only 29% of analysts currently rate Ford as a “Buy,” compared to GM’s much stronger 63%.
What This Means for Investors
These new ratings highlight the stark contrast between GM and Ford’s current positions in the market. GM is seen as a high-growth stock with strong potential, while Ford faces short-term struggles that could hold back its stock performance.
There’s also a bigger concern looming over both companies, the recent 25% tariffs imposed on auto imports from Mexico and Canada. These new tariffs could cost U.S. automakers $40 billion per year and impact profit margins, making it a major factor for investors to watch.
For now, Wall Street is making one thing clear: GM is the stronger investment choice, while Ford still has a lot to prove.
