GM upgraded at Wolfe Research as firm sees ‘select opportunities’ in autos

Investing.com -- Wolfe Research has upgraded General Motors to Outperform, arguing in a note Wednesday that the recent market sell-off has created attractive entry points across parts of the autos sector.

Analyst Emmanuel Rosner wrote that “auto stocks often are among the main targets when macro concerns escalate,” but history shows such periods “can also present interesting buying opportunities.”

In the past three weeks, the average auto stock has fallen about 8 percent. Wolfe Research said that after updating estimates for production and commodity trends, “the risk/reward profile now appears more attractive for select names.”

The firm lifted GM to Outperform from Peer Perform with a $96 price target, saying investors may be “underappreciating the magnitude of potential tailwinds into 2027.”

Those include a refreshed full-size pickup expected to generate roughly $1.7 billion, lower warranty costs, a reduced tariff burden and “further improved EV losses.” Wolfe Research now models GM earnings of $12.37 per share in 2026 and $16.03 in 2027.

Wolfe also upgraded BorgWarner to Outperform, citing its “Power Gen opportunity,” which could add around $2 billion in revenue at scale. The firm said the stock’s pullback means this upside is not priced in.

Rosner maintained his positive stance on Aptiv ahead of its planned separation, citing “a compelling entry point” and strong fundamentals for both resulting businesses.

By contrast, Wolfe Research flagged execution risk for Ford, citing an unclear 2026 production trajectory and the potential for an overstocked year-end inventory that could create a $1.5 billion EBIT headwind into 2027.